Adani Group says it's exploring 'remedial and punitive' legal action against a short-seller who accused it of market manipulation and fraud
Ramesh Dave/Mint/Getty Images
- Short-seller Hindenburg levelled allegations of market manipulation and accounting fraud at Adani Group.
- Adani Group called the report "maliciously mischievous" and "unresearched."
- It's now looking at potential legal action against Hindenburg Research.
The Adani Group said on Thursday it's exploring potential legal action against Hindenburg Research over its Tuesday report which levelled allegations of "brazen stock manipulation and accounting fraud scheme" at the Indian conglomerate.
"We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research," Jatin Jalundhwala, the legal head for the Adani Group, said in statement.
Jugeshinder Singh, the chief financial officer of the Adani Group, previously denied Hindenburg's allegations, and called the report "maliciously mischievous" and "unresearched."
But this did not stem the damage from the New York-based short-seller's report, which sent shockwaves across the market, causing listed Adani Group companies to lose a collective $12 billion in market value on Wednesday, per Bloomberg.
Jalundhwala further said the resulting volatility in the Indian stock markets "is of great concern and has led to unwanted anguish for Indian citizens."
The Adani Group said Hindenburg — which holds short positions against the conglomerate's companies — stands to "benefit from a slide in their share prices."
"We are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public," Jalundhwala added.
The Indian markets are closed Thursday for a public holiday.
from Business Insider https://ift.tt/bo3MwQt
via IFTTT
Comments
Post a Comment