Over the past 30 years, major stock market frauds in India have taken advantage of weaknesses in the regional banking system. However, because of India’s increasing interconnectedness with the world economy and financial system, Mumbai may not be the location of the next major scandal’s planning; rather, it may be London or Singapore.
Or at least that seems to be what Hindenburg Research is implying in its research on Indian businessman Gautam Adani, who it accuses of performing the largest scam in corporate history. It was abruptly dismissed when it was released in the US on Tuesday evening. As the group’s flagship company prepares to launch a significant $2.5 billion share sale, the timing of the publishing shows a flagrant, mala fide aim to damage the group’s reputation.
Video Courtesy: Zee Business
Following a five-year, 2,500% surge in Adani Enterprises Ltd., the center of an empire strongly aligned with Prime Minister Narendra Modi’s economic policy, investors appear to be at least a little wary, as evidenced by the $12 billion decline in Adani shares that followed the publishing of the report.
Let the investors evaluate the results of the campaign against the conglomerate, which CreditSights, a division of Fitch Group, called seriously overleveraged in August. The infrastructure player is essential to everything from India’s ports, airports, and green hydrogen to coal and power. There was a brief period of anxiety in June 2021 that subsided after being provoked by some of the same worries. Even then, other investors should consider the two-year probe by the short-seller. Because it raises numerous issues regarding the integrity of the larger Indian market, which is hampered by the demands of both political nationalism and financial globalization. What do you think about this?
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Adani’s alleged involvement in the Hindenburg incident has investors questioning India
By tirupatinews
