In January 2023 Hindenburg Research, a short-seller in New York, alleged that the Adani Group, one of India’s biggest conglomerates, had used offshore funds to prop up its value. The company denied the claims and the Securities and Exchange Board of India, the country’s primary regulator, said it found no evidence of wrongdoing. Yet this month Hindenburg widened its attack, alleging that SEBI’s investigation had been compromised by conflicts of interest involving its chairwoman, Madhabi Puri Buch.
The opposition Congress Party has called for nationwide protests on Thursday. Congress is demanding Ms Buch’s resignation; it also wants to embarrass the government of Narendra Modi, the prime minister. It may not achieve either goal. Ms Buch, the SEBI and Adani have denied the allegations. Meanwhile, the collective valuation of Adani’s listed companies, which initially fell after Hindenburg posted its claims, has largely recovered. The call to protest may test whether the charges touch an emotional chord among ordinary folk.
|