The capital markets regulator SEBI today asked investors to remain calm and exercise due diligence before reacting to reports such as that by US-based short seller Hindenburg Research.

The Securities and Exchange Board of India (SEBI) said the allegations made by Hindenburg against the Adani Group have been duly investigated by SEBI and 23 out of 24 investigations were completed in March 2024. One remaining investigation is close to completion.

“As a matter of policy, SEBI refrains from commenting on any investigation and ongoing enforcement matter,” SEBI said.

Chairperson Madhabi Buch made relevant disclosures from time to time and recused herself in matters involving potential conflicts of interest, SEBI said in the statement.

The Adani Group also refuted the latest allegations by Hindenburg Research as “malicious, mischievous and manipulative selections of publicly available information” to arrive at “predetermined conclusions for personal profiteering with wanton disregard for facts and the law”.

SEBI said the report seeks to question its action in issuing a show cause notice to Hindenburg Research in June. “The show cause notice in question, alleging violations of securities laws by Hindenburg Research, has been issued by following the due process of the law,” SEBI said.

“It is noted that Hindenburg Research has itself made the show cause notice issued to it available on its website. The show cause notice contains the reasons for its issuance. The proceedings in this matter are ongoing and the same is being dealt with in accordance with the established procedure and in compliance with the principles of natural justice,” SEBI said.

“Lastly, it is emphasised that SEBI has adequate internal mechanisms for addressing issues relating to conflict of interest, which include disclosure framework and provision for recusal. It is noted that relevant disclosures required in terms of holdings of securities and their transfers have been made by the Chairperson from time to time. Chairperson has also recused herself in matters involving potential conflicts of interest,” the regulator said.

Madhabi Puri Buch and husband Dhaval Buch called the allegations by Hindenburg baseless, and also said the short seller is attacking the credibility of SEBI and attempting a character assassination of the chairperson.

Madhabi Buch in a separate statement said her investment in offshore funds mentioned in the Hindenburg report predates her appointment at SEBI by two years.

The Association of Mutual Funds in India (AMFI) called the Hindenburg report an attempt to create sensation by connecting random events from the past. The AMFI asserted that India’s financial system is secure, transparent, designed to foster growth and innovation with high integrity.

Russia’s defence ministry said it had engaged in fighting near two villages, some 25-30km inside Russia. 

​Russia’s defence ministry said it had engaged in fighting near two villages, some 25-30km inside Russia.