Hindenburg Show Cause Case: SEBI Likely To Pass Order After Completing Probe

Markets regulator Securities and Exchange Board of India is likely to pass order on Hindenburg allegations as the the latter has not yest responded despite SEBI issuing a showcause notice, according to people familiar with the matter.

The matter will undergo a thorough investigation, seeking input from all relevant parties before an order is passed, the people said.

The move comes after SEBI, in July, issued a showcause notice to Hindenburg Research LLC, Nathan Anderson and the entities of Mauritius-based foreign portfolio investor Mark Kingdon for trading violations.

SEBI has challenged Hindenburg Research's disclaimer, arguing it misled readers by claiming the report's purpose was to value securities traded outside India, despite its clear relevance to Indian-listed entities.

In June, after nearly 500 days, the Adani Group regained its total market capitalisation that existed before a US-based short seller-triggered event in January last year.

Earlier this year, the Supreme Court gave a clean chit to the Adani Group and dismissed all allegations while reposing confidence in SEBI's powers. The top court ruled that petitioners could not provide enough material to transfer the Adani-Hindenburg probe to a special investigation team. The court disposed of the petitions, finding that the "threshold for a transfer of investigation" had not been made out.