Read on the application
The Hindenburg report may have sent Adani Group shares down sharply, but 12 companies benefited from the environment. According to the investigating agency ED, a dozen companies including Foreign Portfolio Investors and Foreign Institutional Investors (FPI/FII) made huge profits by short selling Adani shares.
What the investigating agency has to say: The ED made several claims in its findings shared with market regulator Securities and Exchange Board of India (SEBI) last July. An Indian Express report quoted a source as saying that some short sellers allegedly sold the shares on January 24. Hindenburg These positions were taken 2-3 days before the release of the research report and some others took short positions for the first time.
According to sources, three of the 12 companies or entities that earn from Adani Group shares are in India. Whereas, four are located in Mauritius and one each in France, Hong Kong, Cayman Islands, Ireland and London. However, none of the FPIs/FIIs have disclosed their ownership structure to the Income Tax authorities.
Which companies in India: According to the report, the 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 passed an order against the promoter of a Delhi-registered company for misleading investors and manipulating the stock market.
What is Short Selling: This is a type of investment strategy in which the investor believes that the share price will fall. It is like betting in a way. In this, investors borrow to sell shares and later buy them back at a lower price. Investors make profit in such transactions. However, it is permitted by SEBI.
say it Hindenburg The Supreme Court is going to hear the SEBI report investigating the allegations leveled against the Adani Group. SEBI submitted a status report before the Supreme Court last week. According to a Reuters report, Sebi has accused the Adani group of violating several technical regulations related to offshore. The report also claims that the Adani group could be fined.