Adani Group calls Hindenburg report an “attack on India”
New Delhi:
Senior advocate Harish Salve has called for a thorough probe into the report by US short seller Hindenburg Research, which led to market volatility last month, which was pulled down by Adani group firms, which were targeted by short sellers.
Keeping aside the politics of the entire episode, Mr. Salve said that Hindenburg was “no good Samaritan” and that the case had “a completely different dimension” to it, that of a middle-class investor making money off of his misfortune.
Salve told NDTV on Friday, “It has a completely different dimension. Hindenburg is not a good Samaritan who exposed wrongdoings. He timed the report, he left the report out. We do.”
“It is my suggestion – I have said it publicly and I am repeating it – the committee should find out all those who have made tons of money at the expense of the middle class investor by shorting shares,” he said, adding a Referring to the sixes – member committee set up by the Supreme Court to probe the Adani Group-Hindenburg row.
“Treat it as market manipulation and get them to get banned and thrown out of business. We should set an example in our market – that first of all if there is a report, it should go to SEBI, it Should go to the Serious Fraud Office.” , it should go to the Ministry of Corporate Affairs – they will investigate and deal with such cases,” Mr Salve said.
“But if you are going to use such reports to attack companies, SEBI will not sit silent. They will go after those who are taking advantage of market volatility, those who have money, Taking advantage, killing the middle class investor,” he said. ,
“India is new to the game. We are ramping up our capital markets. The middle class investor fears that every time he lists a company, tomorrow if there is another Hindenburg report – unless It turns out to be wrong, by the time it is too late, anyway your shares have sunk. We should have some institutional mechanism to say that those who are making money from this misfortune of middle class shareholders, Let them be held to account,” Mr Salve said.
Welcoming the constitution of the committee, Mr. Salve said that the Adani-Hindenburg row involves some complex financial matters which only subject matter experts can handle.
“The JPC (Joint Parliamentary Committee) consists of MPs who are very sensible people. Here, what has happened has happened in one area – a very specific area. What has happened here is that allegations have been made on the structure of the companies Allegations have been made on how the shares have been issued, how the shares have been overvalued, how the market has been played,” Mr Salve said.
The six members of the committee include former Supreme Court judge Justice AM Sapre, former SBI chairman OP Bhat, retired Bombay High Court judge Justice JP Deodhar, former Infosys chairman KV Kamat, Infosys co-founder Nandan Nilekani and lawyer Somashekharan Sundaresan. Are. A securities and regulatory expert.
Mr Salve said it is “important” to conduct the probe in a time-bound manner as investor confidence is fragile.
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group company.)