In the Hindenburg crisis, there was heavy short selling on Adani’s shares, which has benefited 12 companies. These companies made huge profit in short selling. Top short sellers include two Indian companies and the Indian branch of a foreign bank. One Indian company is registered in New Delhi and the other in Mumbai.
Due to the Hindenburg report, there was a huge fall in the shares of Adani Group. Shares of some companies of Adani group had fallen even below 70 percent. After this the case was handed over to the investigating agency ED.
According to a report published by The Indian Express, some short sellers had reportedly taken positions 2-3 days before the publication of the Hindenburg Research report on January 24 and some others had taken short positions for the first time.
According to the ED, a dozen companies including Foreign Portfolio Investors and Foreign Institutional Investors (FPIs/FIIs) made huge profits through short selling in Adani shares. According to sources, out of 12 companies or entities earning from Adani Group shares, three are India-based. Whereas, four are located in Mauritius and one each in France, Hong Kong, Cayman Islands, Ireland and London.
Top short sellers include two Indian companies and the Indian branch of a foreign bank. One Indian company is registered in New Delhi and the other in Mumbai. SEBI had passed an order against the promoter of the Delhi registered company for misleading investors and manipulating the stock market.
The SEBI report probing the allegations leveled against Hindenburg’s Adani Group is going to be heard in the Supreme Court. SEBI had submitted the status report before the Supreme Court last week. According to the Reuters report, SEBI has accused the Adani group of violating some technical rules related to offshore. The report also claimed that the Adani group could be fined.