A public interest litigation (PIL) petition filed by advocate Manoharlal Sharma has urged the Supreme Court to order a probe against the U.S.-based firm Hindenburg Research and its founder Nathan Anderson.
The petition has been filed in the wake of a report by the short-seller firm which led to a dip in the value of Adani Group’s shares in the stock market.
Mr. Sharma has accused the firm of deliberately releasing the report against the Adani Group just before its ₹20,000 crore follow-on public offer.
Explained | Adani Group stocks: What is Hindenburg Research, and how does a short seller operate?
“Whether intentionally short selling to crash stock in share market to square up via crashing market value via concocted artificial means is not a fraud…” the petitioner asked.
The petition asked why market regulator Securities and Exchange Board of India (SEBI) did not suspend trading in the short-selling stock to save investors.
“They secured billions of profits by butchering citizens of India. However, the SEBI did not suspend trading in the stock and allowed short sellers to exploit innocent investors”, the petition alleged.
