SEBI says investors should remain calm and exercise due diligence

SEBI takes note of the report published by Hindenburg Research on August 10, 2024. Investors should remain calm and exercise due diligence before reacting to such reports. Investors may also like to take note of the disclaimer in the report that states that readers should assume that Hindenburg Research may have short positions in the securities covered in the report. The report inter alia claims that SEBI has not taken any action against the Adani Group. It questions SEBI's action of issuing a show cause notice to Hindenburg Research on June 27, 2024. It further claims that SEBI has made changes to the SEBI (REIT) Regulations 2014, in order to benefit a diversified multinational financial conglomerate. These issues warrant an appropriate response. Notably, the allegations made by Hindenburg Research, against the Adani Group, have been duly investigated by SEBI.

Lastly, it is emphasized 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. SEBI, over the years, has built a robust regulatory framework that not only aligns with best global practices but also ensures protection of investors. SEBI remains committed to ensuring the integrity of India's Capital markets and its orderly growth and development.

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