Jathin Kaithavalappil’s Post

The Hindenburg Report, published on August 10, 2024, has captured significant attention in financial markets. This report follows an earlier release from January 25, 2023, which alleged that the Adani Group's shares were overvalued by 85%. Despite the Adani Group's dismissal of these claims as "unsubstantiated speculations," the report led to a decline in their stock prices. In the latest report, Hindenburg reiterates accusations of misconduct against the Adani Group and: o  Links these allegations to Mrs. Madhavi Puri Buch, the Chairperson of SEBI o  Suggests that Mrs. Buch and her husband hold stakes in foreign entities involved in money laundering activities connected to the Adani Group. o  Claims Mrs. Buch’s husband's advisory role at Blackstone facilitated the launch of India’s first REIT IPO. o  Asserts that Mrs. Buch’s alleged connection with the Adani Group has hindered SEBI's ability to investigate the conglomerate's alleged wrongdoings. Both the Adani Group and Mrs. Buch, along with her husband, have categorically denied these allegations, labeling them baseless. SEBI issued a press release on August 11, 2024, stating that 22 out of 24 investigations into the Adani Group have been completed and urging investors to remain calm and exercise diligence, while suggesting that Hindenburg Research may have held short positions in the securities mentioned in their report. Rumors suggest that Hindenburg did have short positions in Adani Group shares and made substantial profits by closing these positions after the report was released. For long-term investors, the report's impact might offer an opportunity to invest in Adani Group stocks at lower prices.

Hindenburg wanted to crash the Indian Market but Hindenburg was not successful..😊 Hindenburg was accused of hatching a conspiracy to induce Foreign Institutional Investors (FIIs) to buy shares at a low price. They also made false allegations against Adani and the SEBI chief, with the intention of crashing the Indian market. However, Hindenburg's entire plan failed. The Indian market did not react to Hindenburg's allegations, and only Adani shares fell by 2%. Hindenburg Report: This controversial report published by Hindenburg Research, a US-based short-seller, which made several allegations of fraud and stock manipulation against the Adani Group, a major Indian conglomerate. The suggests a conspiracy theory that Hindenburg intentionally made false allegations to drive down the price of Adani shares, allowing them to profit from short selling. Market Reaction The text claims that the Indian market as a whole did not react significantly to the Hindenburg report, and only Adani shares experienced a temporary decline. SEBI: The Securities and Exchange Board of India (SEBI) is the regulatory body for the securities market in India. The text alleges that Hindenburg also made false allegations against the SEBI chief. Important Notes: Allegations vs. Facts: The text presents allegations as facts. It is important to note that these are allegations made by one party and have not been proven in a court of law. Complex Issue: The Hindenburg report and its aftermath are a complex issue with multiple perspectives. Market Dynamics: The stock market is influenced by a multitude of factors, and it is difficult to attribute any single event, such as the Hindenburg report, as the sole cause of market movements. Here are some additional points to consider: Short Selling: Short selling involves borrowing shares and selling them with the expectation that the price will fall, allowing the seller to buy them back at a lower price and make a profit. Regulatory Response: SEBI conducted an investigation into the allegations made by Hindenburg and took certain regulatory actions. Investor Sentiment: The Hindenburg report significantly impacted investor sentiment towards the Adani Group and raised concerns about corporate governance in India.

Hindenburg strikes again Part 1 was enacted in 2023 just before Adani Enterprises $2.5 billion follow up public offer ( FPO) was to take place. It forced Adani's to refund the amount collected though the subscription was over subscribed 1:12 times . Adani's clarified that they did not want their investors to suffer due to short selling activity unleashed by Hindenburg research. This time too Adani Enterprises planned a $1billion FPO in mid September and Hindenburg chose to time the strike. In part 2 they involved SEBI chief Madhabi Puri Buch and her husband Dhaval Buch on investments made in Adani group shares through off shore funds. Hindenburg has also alleged that Mauritius was safe haven for such transactions. Adani Enterprises have called the allegations malicious and unsubstantiated and dismissed it. The Buchs have also called the allegations defamotary and false. They have denied any such investments or questionable practice. FSC of Mauritius has denied the allegations of Mauritius being tax haven for off shore funds. They have clarified that the funds mentioned by Hindenburg in its report do not operate from Mauritius. 360 one Asset management mentioned in Hindenburg report denied claim that it's IPE plus fund 1 invested in Adani group shares. Hindenburg made a profit of $4 million through short selling of Adani stocks last year as per Bloomberg. This year too they will make money by such activities since they are proclaimed short sellers. This in spite of denial by all concerned parties mentioned in the report. The cocky comment " Something big soon, India " on X by Hindenburg before the disclosure on Saturday makes their intention clear. They were ready to take chances on their allegations without offering any proof. Promptly on Monday the 12th Aug, Adani stocks crashed and investors were poorer by $2.4 billion in a single day. Adani stocks will reboot and recover eventually but profiteering will happen due to a short seller bent on profiteering through allegations. What is the solution. Investors should remain calm and take informed decision on allegations. Knee jerk reaction leading to sell off's will only encourage short sellers to indulge in such practices more often. From investors perspective buy the stocks at lower price if you see value in it. From government perspective such turbulence in market creates financial instability and needs to be investigated and corrective action taken. It may derail market growth. Time to introspect. Should short selling be allowed. Irony of situation. A short seller based out of US dictates the course of markets in India. #Bloomberg #Hindenburg #Adanigroup #SEBI #offshorefunds #MauritiusFSC https://lnkd.in/gCC96-v2

Compliance is costly? Try non-compliance! 👉🏻 National Stock Exchange announced suspension of trading in Brightcom Group shares from June 14, 2024 Reason? ✅ Brightcom Group's failure to comply with SEBI's listing obligations and disclosure requirements ✅ Company haven’t submitted financial results for September 30, 2023, and December 31, 2023 ✅ Suspension to persist until Brightcom Group fulfills SEBI's requirements ✅ Trading allowed on a trade-for-trade basis in the Z category on the first trading day of every week for six months post 15-day initial suspension ✅ Brightcom Group's share price dropped around 5% to Rs 12.25 apiece on NSE on May 15 ✅ Ace investor Shankar Sharma held nearly 2.3 crore shares, equivalent to 1.14% of Brightcom Group as of December quarter FY23 ✅ Regulatory scrutiny surrounding Brightcom Group due to SEBI directives concerning preferential shares and warrants issuance ✅ SEBI barred Suresh Kumar Reddy and Narayan Raju from holding directorial posts due to lapses in preferential issue of shares and warrants ✅ Brightcom Group filed application before Securities Appellate Tribunal seeking stay on SEBI's order restraining Shankar Sharma and others from selling shares Compliance with disclosure and regulatory norms crucial for listed entities to retain investor confidence Advise: be careful while investing in penny stocks #shares #compliance #sebi #stockmarket #investors #investment #india #penny #linkedin

The growing clout of proxy advisory firms? A Mint review of filings made by public companies to the National Stock Exchange showed that between 1 April and 27 July, large public institutions opposed at least 137 resolutions of 1,300—about one in 10—put forth by 650 companies. Each of these 137 resolutions saw at least 33% votes against the resolution, as per Mint's research. These include the continuation of Pranav Adani, Gautam Adani's nephew, as a director at Adani Wilmar Ltd; chairman Gautam Singhania at Raymond Ltd; vice chairperson Radhika Piramal at VIP Industries Ltd; and chairman Habil Khorakiwala at Wockhardt Ltd.  https://lnkd.in/gPgCt7xq

The Biggest Stock Market Scams Some of the Biggest Stock Market Scams While there have been countless scams throughout history, here are a few notable examples: 1. Harshad Mehta Scam (India, 1992) Overview: Harshad Mehta, a stockbroker, manipulated the Indian stock market by using fake bank receipts and stamp paper to obtain loans. This led to a significant rise in stock prices, followed by a dramatic crash, causing widespread financial losses. Impact: The scam exposed flaws in the Indian financial system and led to significant reforms. 2. Enron Corporation Scandal (United States, 2001) Read More Here: https://lnkd.in/g8wBeutS

Is Hindenburg Lying??????? The Hindenburg report shook the Adani Group two years ago. Since then, Adani has struggled to recover, with its market capitalization still around Rs 6 lakh crore less than it was two years ago. Recently, news emerged that Hindenburg founder Nathan Anderson has shut down the company, which led to a rise in Adani's share prices. Does this mean Adani's troubles are over? To understand the impact of the Hindenburg report, it’s essential to look back at January 2023, when Gautam Adani was the third richest person in the world. Following the report's release, he fell out of the top 15. His wealth had previously surged due to the rising value of Adani Group shares, but Hindenburg's report punctured that market value. After the report, a case was filed in the Supreme Court, and SEBI (the Securities and Exchange Board of India), which regulates the stock market, conducted an investigation, but nothing substantial came of it. Subsequently, Hindenburg scrutinized SEBI chief Madhavi Puri Buch, accusing her of investing in the same foreign fund as Gautam Adani's brother, Vinod. However, no action was taken against her, and her tenure lasts until March of this year. While Adani avoided legal trouble in India, he has faced challenges in the United States. The FBI and SEC have accused him of bribing government officials in India to secure electricity supply contracts. Although Hindenburg has closed down, this investigation is still ongoing, and it remains to be seen what the outcome will be. There are three possible outcomes: punishment, acquittal, or a settlement with fines. A lingering question is why Anderson suddenly shut down his company. His business model involved researching companies suspected of irregularities, followed by short-selling their shares before releasing reports. Some on social media have linked the closure to Donald Trump’s presidency. However, Anderson has stated that he has not received any threats and has previously challenged many major companies. Over 100 individuals are facing lawsuits as a result of his reports. He intends to share his investigative methods, allowing others to expose wrongdoing in companies. To date, the Adani Group has not commented on Hindenburg's closure. #Adaniग्रुप

Good morning News Headline from Leading Financial News Papers, Compiled by 𝐑𝐔𝐃𝐑𝐀 𝐒𝐇𝐀𝐑𝐄𝐒 Friday, 06 December, 2024 • RBI Governor Shaktikanta Das’ last MPC meet before his term ends may leave the repo as is, cut CRR • Bajaj Auto clarifies on dealer inventory, says no price cut on Freedom's 72% portfolio • Bondada Engineering soars after firm bags Rs 1,089 crore order • MapmyIndia's new venture raises governance concerns' • Vishal Mega Mart's Rs 8,000-crore IPO to open on December 11 • Zen Tech shares soar on strategic pact with Florida-based simulation company • NHAI plans Rs 1,000 crore green bonds to fund eco-friendly initiatives along Delhi-Mumbai Expressway • SEBI proposes new mechanism to determine the closing price of a stock • SEBI cautions investors against unregulated bond platforms that sell unlisted securities • Nisus Finance Services IPO sees 18.81 times subscription on day 2, GMP indicates good listing • FIIs continue buying streak; net buy shares worth Rs 8,540 crore • SEBI asks Mishtann Foods to retrieve nearly Rs 100 cr misappropriated, diverted to group entities, promoters, directors • Indus Towers promoters sells Rs 2800 crore worth shares in a block deal • RBI gives nod to Canara Bank proposal to divest its stake in life insurance and MF ventures • IT not a strong buy, consumer discretionary outshines staples, says HDFC Securities' Unmesh Sharma • India outpaces China in green investments as renewables surge • Sai Life Sciences fixes price band at Rs 522-549 a share for IPO • India's steel imports from China hit record high: Report • ITC to increase FPOs to 4,000 in next 4 years linking a crore farmers, scale up MAARS ecosystem • Protein play: Plant-based food market attracts hundreds of SMEs & FMCG firms • Some ATMs to retract cash to tackle fake shutter overlay fraud: RBI • Hyundai Motor to increase prices across models from January 1, 2025 • IFFCO seeks govt nod to launch new nano NPK fertiliser in retail mkt • Life sciences GCCs find a home in South • CAG flags poor exploration by Hindustan Copper • Creditors agree to recast ITNL arm's Rs 1,269 cr debt • 'Tighter norms by SROs to hit business for microlenders • Divi's Lab stock slips on US supply worries • Financial Services, IT and Consumer Goods stocks top FPI buy list in Nov • 'Rise in US bond yields going to be a headwind for EMs • MNC stocks' outperformer marker starts turning frail • Hopes of CRR cut keep D-Street momentum going • All eyes on RBI as liquidity may dry up amid lower FPI flows • 'India plans to relax satcom norms - Elon Musk's Star(link) to align soon? For more details- https://lnkd.in/gjy-gujk

Striking A Balance: SEBI’s Fixed Price Method In Voluntary Delisting On June 27, 2024, the Securities and Exchange Board of India (SEBI) introduced significant amendments to the SEBI (Delisting of Equity Shares) Regulations, 2021. These amendments bring back the fixed price method alongside the reverse book building (RBB) process for voluntary delisting, addressing the speculative trading and inflated exit prices associated with the RBB method. Historical Evolution of India’s Delisting Framework: India's delisting regulations have evolved over the years to balance promoters' and investors' interests while maintaining market integrity. Initially, the fixed price method faced criticism for its lack of transparency. In 2003, SEBI introduced the RBB process to enhance transparency and fairness, but it eventually led to speculative trading and inflated exit prices. Reintroduction of the Fixed Price Method: SEBI's recent amendments reintroduce the fixed price method with a mandate that the offered price includes at least a 15% premium over the floor price. This move aims to counteract the speculative trading and inflated prices seen with the RBB method, providing a fair and transparent exit opportunity for shareholders. Limitations and Issues with the RBB Method: The RBB process, while initially successful, led to speculative trading and significant price volatility. Examples include the delisting of Hexaware Technologies in 2020, where speculative trading surged, and Brady and Morris Engineering Company’s delisting attempt, which saw an exit price premium of 1128.70%. Key Amendments in SEBI Delisting Regulations: Fixed Price Premium: A minimum 15% premium over the floor price. Alternative Delisting Framework for IHCs: A simplified process for Investment Holding Companies. Counter-Offer Mechanism: Lower threshold for making counter-offers. Adjusted Book Value Parameter: Additional parameter for determining the floor price. Modified Reference Date: New reference date for computing the floor price. Concluding Remarks SEBI’s reintroduction of the fixed price method strikes a balance between the interests of investors and promoters, offering a fairer and more predictable exit for investors. This method reduces speculative trading and market manipulation, ensuring a stable and transparent market environment. By safeguarding minority shareholders and promoting inclusivity, SEBI’s regulatory approach enhances investor confidence and market stability. #SEBI #Delisting #FixedPriceMethod #ReverseBookBuilding #Investors #Promoters #MarketIntegrity #Regulations #StockMarket #Volatility #Transparency #TLO #TheLegalOasis

Good morning News Headline from Leading Financial News Papers, Compiled by 𝐑𝐔𝐃𝐑𝐀 𝐒𝐇𝐀𝐑𝐄𝐒 Thursday, 07 November, 2024 • NTPC, ONGC may join hands to acquire Ayana • Fashion retailer Pernia's Pop-Up Shop eyes ₹250 crore in pre-IPO funding • Reliance Power arm Rosa prepays ₹485 crore to Varde Partners, turns 'zero debt firm' • July-Sept wearables shipment down 30% as brands clear inventory • 'Shipping sector may get 'infrastructure' tag by govt for wider financial aid • Motown reaps huge gains from double festive cheer in October • Having a very good cost base critical in India: Skoda Auto Executive • NPPA asks companies to cut prices of three cancer drugs post tax relief • Digital payment's rise leads to shutting of ATMs • Trump's return brings cheer to IT, but euphoria may be short-lived • Exporters may face heat, focus may shift to India's growth • As Trump towers, bulls of Donald Street take over •Adani Enterprises revises capex guidance for FY25 • Waaree Energies shares hit fresh peak to rise 50% since listing, market cap surpasses Rs 1 lakh crore • RITES stock gains on bagging contract worth Rs 36 crore from Delhi Metro Rail Corporation • Swiggy IPO subscription status day 1: Issue booked 12%, retail leads at 54%; GMP signals muted listing gains • ACME Solar IPO subscribed 39% on Day 1, retail investors lead demand • Sagility India IPO sees 52% subscription by Day 2, retail investors drive demand • Airtel extends network to Galwan and DBO in Ladakh with help from Indian Army • Sai Life Sciences, Rubicon Research, Metalman Auto, Sanathan Textiles get green signal from SEBI to launch IPOs • 'The India-US relationship has deepened but a more protectionist US trade policy would pose challenges,' says Anand Rathi's Sujan Hajra • RVNL shares rise as firm emerges as lowest bidder for BSNL project worth Rs 5,000 crore • FIIs net sell shares worth Rs 4,446 crore, DIIs net buy Rs 4,889 crore • Block deals: PI Opportunities AIF V LLP executes major trades across multiple blue-chip stocks • Niva Bupa Health Insurance closes anchor book, raises Rs 990 crore out of Rs 2,200 crore IPO size • Several smallcaps from automobile components, pharma, tier-2 defense returned to buy zone, says investment advisor • HZL OFS over-subscribed by institutional investors; attracts Rs 3,400-crore worth bids For more details- https://lnkd.in/eghyA3V