The Adani Group’s claims to its American investors in the wake of short-seller Hindenburg’s report are being investigated by the Securities and Exchange Commission (SEC) in the US and the Attorney’s Office in Brooklyn, New York, according to a Bloomberg article.
Details on US regulators are investigating Adani Group’s investor claims in light of the Hindenburg revelations
The companies under the ownership of Gautam Adani were charged in a study earlier this year by Hindenburg Research with utilising offshore firms to manipulate their share prices. The excessive debt, which was degrading investor wealth by $11 billion, was another issue raised by the short seller.
The Attorney’s Office in Brooklyn and the SEC have contacted institutional investors with significant interests in the Adani Group, according to a report citing sources, requesting information on what the Adani Group informed American investors.
According to two other sources who spoke to Bloomberg, the SEC just started a similar investigation.
However, given that law enforcement organisations frequently launch investigations that have no bearing on actual action, demands for information from US prosecutors do not always imply the filing of criminal or civil procedures.
According to a representative for the Adani Group, no investor subpoenas have been issued, according to Bloomberg.
The Gautam Adani-led Adani Group is already being scrutinised by Indian regulators. In May, the Securities and Exchange Board of India declared that its investigations into alleged irregularities in foreign investments in the Adani Group had “drawn a blank.”
Sebi said in a court filing that it had never looked into Gautam Adani’s company in the past and called the accusations “factually baseless.”
Sebi added that there is no connection between the difficulties mentioned by US-based short-seller Hindenburg in its report and the “investigation” referred to in the reply document, according to Sebi.
A different Expert Committee added that the investigation into the matter could be a “journey without a destination.”
The special panel was established, among other things, to look into any regulatory shortcomings in handling the alleged breaking of the law by the Adani Group or other businesses.
