Kavya Jain’s Post

Hindenburg vs. Adani vs. SEBI: The Latest Twist This weekend, the financial world was abuzz as Hindenburg Research, a high-profile short-selling firm, leveled serious accusations against SEBI’s chairperson, Madhabi Puri-Buch. Hindenburg claimed wrongdoing, but SEBI and Madhabi Puri-Buch have swiftly countered these allegations. Short sellers, often seen as the stock market’s vigilantes, profit by betting that stock prices will fall. They sell high and buy back low, a strategy that, while sometimes uncovering corporate flaws, can also be driven by less noble motives. Hindenburg first grabbed headlines in January 2023 with allegations of stock manipulation and fraud against the Adani Group. This sparked a dramatic plunge in Adani’s stock prices, with some companies seeing drops of up to 80%. By mid-2024, however, Adani's stock had largely rebounded. In March 2023, the Supreme Court of India tasked SEBI with probing these claims. By early 2024, SEBI had nearly finished its investigation, though the results are still under wraps. The story took another turn in early July when Hindenburg disclosed that SEBI had issued a notice accusing them of not revealing certain information and potentially profiting from misleading statements. The drama escalated on August 10 when Hindenburg accused SEBI Chairperson Madhabi Puri-Buch and her husband of ties to offshore funds linked to Adani, suggesting potential conflicts of interest due to her husband’s role with Blackstone, a major real estate investment firm. SEBI and Puri-Buch were quick to respond, urging calm and clarity. SEBI assured that Madhabi Puri-Buch has always been open about her financial interests and has stepped back from any decisions where conflicts could arise. Madhabi Puri-Buch dismissed the claims as unfounded attacks aimed at damaging her reputation and SEBI’s credibility. IIFL, mentioned in the accusations, also refuted any connection to Adani. This latest chapter underscores the double-edged nature of short selling. While these firms can spotlight genuine issues, their tactics can also provoke controversy and confusion.

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

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

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.

Prime Stock Recommendation: This conglomerate stock is about to take off. Read all about it in this research report by Chandrachoodamani N V [Premium; Register for free to read] https://lnkd.in/g5hNc9EH

Prime Stock Recommendation: This conglomerate stock is about to take off. Read all about it in this research report by Chandrachoodamani N V [Premium; Register for free to read] https://lnkd.in/g5hNc9EH

Prime Stock Recommendation: This conglomerate stock is about to take off. Read all about it in this research report by Chandrachoodamani N V [Premium; Register for free to read] https://lnkd.in/g5hNc9EH

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

If #GQG is pressured to sell even a fraction of its stake, it could set off a domino effect in the market, spooking other investors to follow suit. And that’s the precarious situation GQG, #LIC, and other big investors are in — a classic Mexican standoff. Or a situation where multiple parties are locked in a confrontation, and no one can move without putting themselves at risk. No one wants to make the first move, knowing it could destabilise the market and hurt their own interests, causing them immeasurable losses. So the big question is, will GQG stand its ground as it did last year? Back in 2023, when the #Hindenburg report sent #Adani stocks into a tailspin, it was GQG that stepped in with a $1.9 billion lifeline. That vote of confidence helped stabilise the situation, with Adani stocks eventually recovering and surpassing pre-Hindenburg levels. Or will mounting client pressure force GQG to retreat this time, potentially triggering a full-blown crisis? #CapitalMarkets #business

FIIs are making their picks in the Indian market! Here's a glimpse at the top 7 stocks attracting the most FII investments. Dr. Dinesh Jain Vaibhav Jain Rajesh Agarwal (Jindal) Mahesh Agarwal Mukesh Kochar Praveen Jain , FRM Abhishek Jain Anuj Jain Kamal Rampuria #stockmarket #businessnews #FII #investorfavourites #indianstocks #equitytrading #equitymarket #stockinfocus #wealthmanagement #AUMCapital Disclaimer - This infographic is for informational purposes only and does not constitute a recommendation to buy or sell any securities. Users are expected to conduct their own research before making any investment decisions.