Adani Group comes under regulatory scrutiny in the US, after a short seller report

23 Jun 2023 , 11:31 AM

Following a damning short seller’s report that claimed the business was secretly manipulating its share prices by utilizing offshore companies, US regulators are looking into the claims Adani Group made to its American investors.

According to news reports, institutional investors with sizable stakes in the Indian conglomerate have received inquiries from the US Attorney’s Office in Brooklyn, New York, recently. 

The requests for information, according to the report, were concentrated on what Adani Group informed those investors. According to reports, the Securities and Exchange Commission is also conducting a related investigation.

As a result of a study by short-seller Hindenburg Research accusing Adani Group, one of the largest conglomerates in India, of ongoing stock manipulation and accounting fraud, US regulators are now paying close attention to the company. The organization, which is run by billionaire Gautam Adani, is already under investigation by local authorities.

As Indian Prime Minister Narendra Modi was being greeted at the White House by President Joe Biden, news of the inquiries broke. 

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