In January 2023, Hindenburg Research, a well-known financial analysis company shocked the world. The research released a report alleging extensive fraud and stock manipulation by India’s Adani Group. In addition, the allegations resulted in the decline in Adani’s market worth. The report also called for a thorough inquiry by the Securities and Exchange Board of India (SEBI).  

The allegations which first surfaced in 2023, have now escalated to new allegations against SEBI, India’s market regulator. The latest allegation has caused an estimated loss of ₹53,000 crore to investors, as shares of Adani Group companies dropped by 7%. The combined market value of all 10 Adani stocks has now dropped to ₹16.7 lakh crore.  

Hindenburg vs Adani 

Hindenburg’s Report- 

Hindenburg released a report on January 25, 2023, accusing the Adani Group, of “brazen stock manipulation and accounting fraud over decades.” The timing of the report was noteworthy, released a few days prior the group’s flagship company, Adani Enterprises, was set to launch a $2.5 billion share. Hindenburg further claimed that the Group is involved in billion-dollar “suspicious transactions” with offshore shell entities connected to Vinod Adani, the brother of the chairman.

 Adani’s Response- 

The company replied against Hindenburg Research by threatening legal action and claiming that the company was manipulating their share sale.  

The conglomerate rejected Hindenburg’s accusations as baseless in a detailed 413-page response and accused the firm of causing trouble in the market.  

Supreme Court’s Verdict- 

• In February 2023, the Supreme Court of India heard a PIL, requesting the committee to investigate the Hindenburg’s report made against the Adani.  

• On March 2, 2023, the court directed SEBI to investigate the claims of financial irregularities and manipulation of stock prices.  

• On November 24, 2024, the court’s verdict was reserved after reviewing multiple pleas related to the allegations.  

• On January 3, 2024, SC rejected a plea for an independent CBI investigation and ordered SEBI to conclude the investigation in three months. 

Hindenburg’s allegations against SEBI 

On 10 August 2024, Hindenburg released a report, alleging that SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, have financial ties with offshore firms connected to the Adani Group.  

In response to the latest allegations, Madhabi Buch termed them as a “character assassination” attempt. She and Dhaval referred to the allegations as “baseless” and “false,” asserting that their financial affairs are completely transparent.  

Meanwhile, the Adani Group has firmly denied the latest accusations, labelling them as “malicious, mischievous, and manipulative.” The business characterized it a “calculated, deliberate effort to tarnish” its name.  

The opposition parties are criticizing BJP administration, due to these latest accusations. Congress has called for immediate action to resolve any conflicts of SEBI’s investigation of the Adani Group.