Mint’s Post

Nardello & Co. Managing Director and Head of Hong Kong Nicholas Blank shares his thoughts on US investment research firm Hindenburg’s posting of the full-text “show cause” notice it received from India’s Securities and Exchange Board (SEBI). In his article Blank explains, “In its public response, Hindenburg notes just how important words are for the Indian regulator. SEBI took issue with Hindenburg's use of the term “scandal" to describe a fraud scheme by Adani, and use of “leniency” to describe how bans on Adani Group entities for stock market manipulation were lessened to token fines.”   Read the full article to learn more about what factors are at play: https://lnkd.in/eypuAN86 Learn more about Nick's practice at Nardello & Co.: https://lnkd.in/eRUwrbJ3 #Hindenburg #SEBI #KingdonCapital #IndianSecuritiesMarket #Adani #APAC

In a stunning turn of events that has sent shockwaves through India’s financial and political landscape, U.S.-based short-seller Hindenburg Research has accused Madhabi Puri Buch, the head of India’s market regulator, the Securities and Exchange Board of India (SEBI), of holding investments in offshore funds linked to the Adani Group. The allegation, which surfaced on Saturday, has added a new layer of complexity to the ongoing scrutiny of one of India’s largest conglomerates and raised significant questions about potential conflicts of interest at the highest levels of market oversight. https://bit.ly/3SNAdMF

🚨 Whistleblower Revelations: Adani Group Under Scrutiny Again 🚨 Recent whistleblower documents have shed light on a complex network allegedly involving Vinod Adani, brother of Gautam Adani, and the use of a small offshore Mauritius fund, "IPE Plus Fund." This fund, set up by an Adani director through India Infoline (IIFL), a wealth management firm linked to the Wirecard scandal, was reportedly used to channel funds into Indian markets. Allegations: Siphoned Funds: The whistleblower claims that funds were siphoned from over-invoicing of power equipment supplied to the Adani Group, which were then funneled through this offshore structure. Questionable Investments: These funds were allegedly used to invest in Indian markets, raising concerns about the financial practices and governance within the Adani Group. Impact on the Stock Market: The potential fallout from these revelations could be significant. If these allegations gain traction, we might see a sharp reaction in the stock market, particularly with Adani Group stocks. Investor confidence could be shaken, leading to a sell-off, which could also impact the broader market, given the Group's prominence in various sectors. Furthermore, the situation could trigger increased regulatory scrutiny across the board, impacting not just Adani-related stocks but also other companies with complex financial structures. In the short term, market volatility may rise as investors react to these developments. As always, it's crucial for investors to stay informed and closely monitor how the situation unfolds. #AdaniGroup #CorporateGovernance #FinancialTransparency #Whistleblower #MarketNews #StockMarketImpact

News - : Hindenburg Research has recently hinted at another major revelation involving an Indian company, sparking widespread speculation. On August 10, 2024, the firm posted a cryptic message on X (formerly Twitter) saying, "Something big soon India," suggesting that a new report is on the horizon. This comes after their explosive January 2023 report that accused the Adani Group of significant financial misconduct, leading to a dramatic fall in the company's stock prices. While Hindenburg hasn't provided any specific details about this new development, the financial world is on high alert, given the impact of their previous report on the Adani Group. The January report had led to over $100 billion in losses for Adani's companies and drew intense scrutiny from global financial markets. The upcoming report could have similarly significant consequences depending on the target.

SEBI - Hindenburg - Indian Market Regulartor’s Chairperson who was supposed to investigate Adani group had investments in the same obscure funds in Mauritius which were used by Adani to manipulate Indian Share market. There is no doubt that there is massive conflict of interest #SEBI’s chairperson Buch has with Adani & soecifically the offshore entities that facilitated the share market manipulation. The @HindenburgRes documents are crystal clear. IIFL, Trident Trust Mauritius, the GDOF fund, all these figure in our Adani investigation with The Organized Crime and Corruption Reporting Project here - https://lnkd.in/dUf5n_i9 The same Buch used for their investment. So the SEBI chairperson knew who to ask, where to dig, if it really wanted to investigate Adani. But, it didn’t. Now we know why. & also will the #SupremeCourt get down from its high horse & really investigate the #Adani group. Not like the last time when “they hit the wall”, with SEBI (now we know why) & appointed a compromised committee where 3 out of 5 “experts” had conflict of interest with Adani Group. The real question is ‘Will there be accountability?’ But go happily scream “Attack on India” while a select few loot your money. 🙄 Read Hindenburg Research report here - https://lnkd.in/gu7Q8haJ #HindenburgReport #SEBI #Adani #SupremeCourt #ShareMarket #India #TaxHaven

Surprising claim by Hindenburg Research. Very interesting It claims SEBI failed to take appropriate action against Adani where they used multiple off shore entities situated in Mauritius to manipulate stock market in India. Main reason :- 1. SEBI chairperson invested in one of those entities and cashed out investment later on 2. Husband of SEBI chairperson became Senior Advisor to Blackstone without having any experience in same line 3. Blackstone invested in Real estate Investment Trust which were approved by SEBI later on Conclusion:- When you have conflict of interest you can't give justice to matter. Personal view :- This publication needs detailed analysis, Question raised are concerning. https://lnkd.in/dcPfHCMt

First Adani Group, now Kotak Mahindra Bank and SEBI? A US-based activist investor Hindenburg has again spoken on the Adani Group controversy but the targets of the research firm this time are Kotak Mahindra Bank and SEBI. After the morning announcement of the reports, the share price of Kotak Mahindra Bank fell by 4%. According to the Hindenburg report, a fund run by Kotak built a short position before the report was published on January 25, 2023. Although the firm has not yet revealed the name of the client, the claims are imposed on the Kotak Bank on the basis that the Kotak Bank is internally aware of the fact that such a report on Adani Group was bound to be released as the Bank has the partner of Hindenburg as their client. Immediately after the allegations, the firm released a statement that Hindenburg has never been a client of the firm nor an investor in Kotak India Opportunities Fund(KIOF). They have also mentioned that they were never aware of any of their clients being in partnership with Hindenburg. KIOF mentioned that the investments were made on advice and for the benefit of their client Kindon. The statement made by Hindenburg for same is “One might think that a securities regulator would be interested in meaningfully pursuing the parties that ran a secret offshore shell empire engaging in billions of dollars of undisclosed related party transactions through public companies while propping up its stocks through undisclosed share ownership via a network of sham investment entities. Instead, Sebi seems more interested in pursuing those who expose such practices. This stance is broadly in line with the actions of other elements of the Indian government which have sought to arrest four journalists for writing critical articles about Adani and expelled members of parliament who were critical of Adani”. #Finance #FinancialMarkets #LatestUpdates #SEBI #Hindenburg

Hindenburg Research has received a show cause notice from the Securities and Exchange Board of India (SEBI) for allegedly engaging in fraudulent and unfair trade practices related to trading in Adani Enterprises stock in violation of Indian regulations. The US-based investment research firm has dismissed the notice as an attempt to silence and intimidate those who expose corruption in India. SEBI's investigation into the matter remains inconclusive, and the notice directs Hindenburg to show cause as to why inquiries should not be held against them and disgorgement of unlawfully made profits. #AsiaRisk #RegulatoryEnforcementActions #India Follow us for daily updates on risk and operations in Asia! https://lnkd.in/gF9bytdf

US-based Hindenburg Research, which received a show cause notice from market regulator SEBI regarding its Adani Report, has now responded to the notice. In a blog post, the US-based short seller stated that the research firm was short on Adani shares "through a deal with an investor partner who was indirectly short Adani derivatives through a non-Indian, offshore fund structure." Hindenburg alleged that SEBI did not name the private lender involved in short-selling Adani group shares. The blog post claims that India's Kotak Mahindra Bank, founded by billionaire Uday Kotak, created the offshore fund that was used by its investor partner to short Adani shares. "Kotak Bank, one of India’s largest banks and brokerage firms founded by Uday Kotak, created and oversaw the offshore fund structure used by our investor partner to bet against Adani," it said. Hindenburg mentioned that SEBI only referred to the K-India Opportunities fund and used the acronym "KMIL" to mask the "Kotak" name. "We suspect SEBI's omission of Kotak or any Kotak board member may be to protect yet another powerful Indian businessman from scrutiny, a role SEBI seems to embrace," Hindenburg added. However, Kotak Mahindra International Ltd stated, "KMIL or KIOF state that Hindenburg has never been a client of the firm nor has it ever been an investor in the fund." "The fund was never aware Hindenburg was a partner of any of its investors," it added. #adanigroup #adani #kotakmahindrabank #hindenburg #investors #indianstartupnews