The Securities and Exchange Board of India (SEBI) has urged such investors avoid responding to such reports, including the one released by Hindenburg Research, without research. Subsequently, in a press release, SEBI pointed out to the fact that the Hindenburg report had included an acknowledgement that the firm might have a short position in some of the securities highlighted in the report.
SEBI Advises Investors to Exercise Caution
The Securities and Exchange Board of India (SEBI) has issued a statement advising investors to remain calm and exercise due diligence before reacting to reports like the one published by Hindenburg Research.
Disclaimer and Conflict of… pic.twitter.com/c5HZX2LGZN
— THE TIME PRESS (@thetimepress_) August 12, 2024
SEBI highlighted its sound policy and procedures for handling conflict-of-interest matters; disclosure regime and a mechanism for impartiality. The regulator also observed that the Chairperson of the Bank has disclosed holdings and trades of securities and has not participated in any Bank business relating to any securities which might cause a conflict of interest.
The regulator also said it has looked into the claims by the short-seller Hindenburg Research against the Adani Group and concluded them to be unfounded. SEBI is still up and about in enforcing reforms that will bolster the integrity of the Indian capital market as well as its orderly expansion.
SEBI’s Key Points:
– Investors should exercise caution and due diligence before reacting to reports like Hindenburg
– Hindenburg’s disclaimer discloses potential short positions in securities covered
– SEBI has robust internal mechanisms for addressing conflict-of-interest issues
– Chairperson has made relevant disclosures and recused herself in matters involving potential conflicts of interest
– Allegations against Adani Group have been investigated and found to be unsubstantiated
– SEBI remains committed to ensuring market integrity and orderly growth
Thus, SEBI tries to keep the market stable and others protect investors’ interests due to controversies connected to the Hindenburg report through the encouragement to act carefully and be informed.
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