Singapore monitors short-sellers after Adani Group-Hindenburg saga

Singapore will closely examine short-seller reports and the companies’ response if there are cases similar to the explosive allegations made against the Adani Group, Senior Minister Tharman Shanmugaratnam said.

“Transparency, in the form of accurate, clear, and timely communication is the best defence for a listed company that is the subject of a short-seller report,” Tharman said in a written reply to parliamentary question on protection for Singapore companies against short sellers.

The Singapore Exchange’s regulatory arm may order an independent review if there are areas of concern, said Tharman, who also serves as minister in charge of the Monetary Authority of Singapore. The financial regulator and the white-collar police will also investigate if there are grounds to suspect there’s market misconduct.

India’s top court set up a panel to probe allegations against the Adani Group, after a bombshell report alleging fraud and stock rigging from Hindenburg Research wiped out more than $140 billion from its market value. Billionaire Gautam Adani’s conglomerate has denied the accusations.

In Singapore, at least two major companies have come under attack from short-sellers. Authorities in 2022 closed a probe into Noble Group Ltd. with a record fine, years after Iceberg Research accused the commodity trader of inflating its profits. In 2012, Muddy Waters LLC raised doubts about Olam International Ltd.’s finances. The food commodities trader, which suffered a stock rout, dismissed the claims.