Adani Stocks Drop After Hindenburg Accuses SEBI Chief of Conflict of Interest

Adani Stocks Drop After Hindenburg Accuses SEBI Chief of Conflict of Interest

On Monday, August 12, Adani Group stocks, including Adani Enterprises, Adani Ports, and Adani Power, experienced significant declines, with shares falling as much as 5-6% from the previous close. The sharp drop followed the release of a fresh report by US-based short seller Hindenburg Research.

The broader NSE Nifty 50 index also faced pressure, dropping over 100 points or 0.45% to 24,254. However, the index managed to withstand the impact better than Adani Group shares.

Over the weekend, Hindenburg released a report alleging that SEBI Chairperson Madhabi Puri Buch may have failed to thoroughly investigate the Adani Group due to a potential conflict of interest. The report claims that Buch and her husband, Dhaval Buch, had investments in the same funds used by Adani executives for financial transactions, raising concerns about the impartiality of SEBI’s oversight.

Adani Group Stock%age FallCMP
Adani Enterprises3.8 percentRs 3,066.8
Adani Ports and SEZ2.9 percentRs 1,489.1
Adani Green Energy3.5 percentRs 1,717.8
Adani Energy Solutions3.9 percentRs 1,060.9
Adani Wilmar3.9 percentRs 370.3
Adani Power4.9 percentRs 661.5
Adani Total Gas6.1 percentRs 816.6
Ambuja Cements1.2 percentRs 624.5

In response to the allegations, SEBI, Madhabi Puri Buch, and Dhaval Buch have issued detailed rebuttals, strongly denying the claims made by Hindenburg. SEBI also confirmed that Madhabi Puri Buch had consistently made proper disclosures, as required by her position.

The developments have heightened market scrutiny of the Adani Group and SEBI, impacting investor sentiment and leading to volatility in the stocks of one of India’s largest conglomerates.

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Source: Moneycontrol

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