Investors should stay calm: SEBI on Hindenburg’s allegations

Market regulator SEBI on Sunday said investors should remain calm and exercise due diligence before reacting to the report released by Hindenburg Research.

“Investors may also like to take note of the disclaimer in the report that states that readers should assume that Hindenburg Research may have short positions in the securities covered in the report,” Sebi said in a statement.

• Also read: Adani Group rejects Hindenburg’s fresh allegations, says US-based short seller using manipulative information for profiteering

Countering claims by Hindenburg that SEBI has not taken any action against the Adani Group, the market regulator said that in January, SEBI had completed twenty–two out of twenty–four investigations into the Adani Group. Subsequently, one more investigation was completed in March 2024, and one remaining investigation is close to completion. During the ongoing investigation into this matter, more than 100 summons, around 1,100 letters and emails have been issued to seek information. Further, more than 100 communications have been made seeking assistance from domestic/foreign regulators and external agencies. Also more than 300 documents containing around 12,000 pages have been examined.

Countering claims that SEBI has made changes to the REIT Regulations 2014, in order to benefit a diversified multinational financial conglomerate, the market regulator said, “As a measure of transparency, the agenda papers for Board meetings and outcomes of Board discussions are also published on SEBI website. Hence, claims that such regulations, changes to regulations or circulars issued related to REITs were to favour one large multinational financial conglomerate, are inappropriate.”

• Also read: Hindenburg attacking SEBI’s credibility, indulging in character assassination of its chief: Buchs

The regulator also backed its Chairperson Madhabi Puri Buch’s stance that she had made adequate disclosures about her investments. “SEBI has adequate internal mechanisms for addressing issues relating to conflict of interest, which include disclosure framework and provision for recusal. It is noted that relevant disclosures required in terms of holdings of securities and their transfers have been made by the Chairperson from time to time. Chairperson has also recused herself in matters involving potential conflicts of interest,” the regulator said.