Investing.com — Shares of Adani Group-controlled companies fell on Monday after U.S.-based short seller Hindenburg raised allegations of conflicts of interest between India’s securities regulator and an offshore fund linked to the conglomerate.
Adani Enterprises The conglomerate’s flagship units, Adani Ports and Special Economic Zone Limited (NS:) and Adani Ports and Special Economic Zone Limited (NS:), fell 4% to 2.8% respectively in morning trade, while Adani Total Gas Limited (NS:), Adani Energy Solutions Limited (NS:) and Adani Green Energy Ltd (NS:) and Adani Wilmar Ltd (NS:) fell 3% to 6%.
Hindenburg alleged that Madhavi Puri Book, chairman of the Securities and Exchange Board of India (SEBI), had invested in offshore funds linked to Adani, which the board has previously accused of inflating Adani’s share price.
In his reply on Sunday, Buch denied the allegations and said the investments in offshore companies were made two years before he was appointed as SEBI chief.
The move was the latest development in the allegations against Adani by Hindenburg, who in a scathing report published last year accused the bank of engaging in share price manipulation and money laundering.
SEBI has initiated an investigation into the allegations, which is still ongoing.
The Hindenburg report caused heavy losses in Adani’s share price, but the company has recovered much of those losses over the past year.
Hindenburg’s claims have also drawn the ire of the Securities and Exchange Board of India (SEBI) and India’s ruling BJP party, which issued a show-cause notice to the short seller last month.
Adani denied the new allegations in a response filed over the weekend.
“These allegations against the Adani Group are a recycling of discredited allegations which we totally deny… The Adani Group has no commercial relationship whatsoever with the individuals and matters mentioned.”
The decline in Adani shares spread to Indian shares broadly on Monday, with Adani and IBKR falling about 0.4% each.
