Hindenburg Allegations Against Sebi Chief: Will Investors Brace For A Sell-off? All Eyes On Market Today

New Delhi: The Adani group stocks including Adani Enterprises Ltd and Adani Power Ltd will be keenly watched on Monday as the market opens following Hindenburg's latest report (published Saturday 10 August 2023), alleging Sebi Chairperson and her husband in the company's 'Obscure Offshore Funds'.

Securities and Exchange Board of India (Sebi), has issued a statement for investors, asking them to be calm.

"SEBI takes note of the report published by Hindenburg Research on August 10, 2024. Investors should remain calm and exercise due diligence before reacting to such reports. Investors may also like to take note of the disclaimer in the report that states that readers should assume that Hindenburg Research may have short positions in the securities covered in the report," said the market regulator .

Zee Business Managing Editor Anil Singhvi has cautioned the revelations and allegations will eclipse investment sentiments in the market. He added that the news may affect both investor sentiment and wealth. Terming it as a ‘serious matter for the market’, Singhvi said that market participants will be ‘closely tracking headlines on the matter as transparency is very important for the market’.

The Hindenburg latest report, citing Whistleblower Documents, said that it showed “Madhabi Buch, The Current Chairperson of SEBI, And Her Husband Had Stakes In Both Obscure Offshore Funds Used In The Adani Money Siphoning Scandal.”

Singhvi further added that the situation is going to be tough. He added, “It will be a tough call whether the Sebi chairperson should stay at the helm of the powerful institution that Sebi is at least until any likely investigation is underway” 

Further opining that the case might instill in some sort of doubts amongst investors, Singhvi said, "Doubts will likely emerge among investors as the news follows Sebi's clean chit to Adani... Hindenburg had shared a cryptic message on X (formerly Twitter) that it would come up with 'something big' on India, but nobody would have thought about possible connections between the Sebi chief and Adani," said Singhvi. 

The market guru also asserted that the turn of events will spell big repercussions for the market “Although the Sebi chairperson has asserted that she is ready to reveal "any and all" documents needed in relation to this matter, it may still be a big setback for the market, the market guru added.” 

Meanwhile, Sebi chief, has given a point by point rebuttal to the Hindenburg report has said that certain allegations made against SEBI would be addressed by the institution independently, while the couple would like to address the issues pertaining to them in their personal capacity.