 "Adani Group")
The Adani Group is pushing for accountability against Hindenburg Research after the US firm’s allegations wiped out almost $150 billion in shareholder value in 2023 before being dismissed by regulators, as per top group sources.
“With Sebi’s (Securities and Exchange Board of India’s) orders behind us, the real question is who will hold Hindenburg responsible for the losses inflicted on millions of investors,” a person close to the Adani Group said, asking not to be identified.
The Sebi last week gave the conglomerate a clean chit, ruling out related-party violations under the laws then in force. Suspicious loans flagged by now-closed Hindenburg’s January 2023 report were deemed commercial in nature and repaid with interest, according to Sebi’s final orders. The group had denied the allegations and the promoters sold shares in group companies soon after the report, and repaid debt to stabilise the group shares.
The person added that while the short-seller profited from the turmoil, retail investors bore the cost. The group’s total market capitalisation has still not touched the highest peak seen before the Hindenburg report was released (see chart).
Hindenburg has since disbanded in 2025, leaving behind what Adani sources describe as an “accountability vacuum.”
In July this year, the Sebi had issued show-cause notices (SCNs) to Hindenburg Research, US-based hedge fund manager Mark Kingdon, and four others, accusing them of colluding to use non-public information to build short positions against the Adani group.
According to the SCN, Kingdon — through a Mauritius-based fund — established short positions ahead of the release of Hindenburg's report. It said the report “misled” readers and caused “panic” in Adani group stocks, thus “deflating prices to the maximum extent possible and profit from the same.
In January 2023, Adani group’s listed companies lost nearly $150 billion in value, foreign investors pulled back, and Sebi itself faced accusations of regulatory failure. The Supreme Court oversaw the probe, setting up an expert panel that included prominent figures such as Nandan Nilekani, cofounder and chairman of Infosys, and KV Kamath, independent director, Reliance Industries. The court later reinforced Sebi’s jurisdiction, strengthening the regulator’s independence.
After the Sebi order on Thursday, the markets reacted swiftly as Adani group shares surged on Friday as the overhang lifted. Morgan Stanley on Friday initiated coverage of Adani Power for the first time in over a decade.
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