The Financial Services Commission (FSC) of Mauritius has responded to the allegations of Hindenburg Research. The FSC said in the statement that Mauritius does not allow the creation of shell companies. Not only this, it should not be labeled as a ‘tax haven’. As a regulator created for the non-banking financial services sector and global business in Mauritius, the FSC also emphasized the strength of its legislative framework. The FSC said, ‘Mauritius has a strong framework for global business companies.’ Mauritius follows international best practices
All global business companies licensed by the FSC are required to meet all the requirements of the Financial Services Act. This compliance is closely monitored by the FSC, which ensures that Mauritius follows international best practices. The FSC also said in the statement that Mauritius has been rated under the standards set by the Economic Corporation and Development i.e. OECD. IPE Plus Fund and IPE Plus Fund-1 are not based in Mauritius
On the claims made in the Hindenburg report, the FSC said that ‘IPE Plus Fund and IPE Plus Fund-1, whose names have been given by the American short seller in his report. Both these funds are not licensees of the FSC and are also not based in Mauritius. Hindenburg said – SEBI Chief accepted the allegations in clarification
2 days ago, American short seller Hindenburg had said that SEBI Chairperson Madhabi Buch has accepted many things while responding to our report, which has raised many new questions. Hindenburg had said – Buch’s answer confirms that his investment was in the Bermuda / Mauritius fund. This is the same fund which was used by Gautam Adani’s brother Vinod Adani. It is alleged that Vinod Adani used to increase the price of his group’s shares through these funds. Hindenburg Research had also said that market regulator SEBI was tasked with investigating these offshore funds related to the Adani case, in which investments were made by Madhabi Puri Buch. This is clearly a big case of conflict of interest. Hindenburg had claimed in its report published on Saturday that Madhabi Puri Buch and her husband Dhawal Buch have stakes in an offshore company linked to the Adani Group. Part 1: On August 10, Hindenburg released a report and accused the SEBI chairperson Part 2: After Hindenburg’s allegations, SEBI chief and her husband gave clarification Part 3: After the answer of SEBI chairperson, Hindenburg’s new questions The SEBI chairperson had invested in the fund mentioned in 2015 Madhabi Puri Buch and her husband Dhawal Buch had issued a statement on Sunday (August 11) denying Hindenburg’s allegations. SEBI Chairperson said – He had taken the fund mentioned in 2015. He had no relation with SEBI then. He accused Hindenburg of issuing show cause notices in different cases in India. It is unfortunate that instead of responding to the notice, he has chosen to attack the credibility of SEBI and defame the character of SEBI Chief. Adani Group said – No business relations with those named by Hindenburg
On Hindenburg’s report, Adani Group has said, the group does not have business relations with the SEBI chief. The group also does not have transactions with those named with the SEBI chief. The questions raised on foreign holdings are baseless. The structure of the group’s foreign holdings is completely transparent. It was not used to manipulate funds. The group said – Hindenburg misused publicly available information for its own benefit. The allegations leveled against the Adani Group have already been proven baseless. After a thorough investigation, the Supreme Court dismissed Hindenburg’s allegations in January 2024. Adani Group was accused of money laundering, share manipulation. On January 24, 2023, Hindenburg Research published a report on the Adani Group. After the report, there was a huge decline in the shares of the group. However, it later recovered. Regarding this report, the Indian stock market regulator Securities Exchange Board of India (SEBI) also sent a 46-page show cause notice to Hindenburg. In a blog post published on July 1, 2024, Hindenburg Research said that the notice states that it has violated the rules. The company said, SEBI has alleged that Hindenburg’s report contains some false statements to mislead readers. Responding to this, Hindenburg had made several allegations against SEBI itself. Adani Enterprises’ stock fell 59% after the report
On January 24, 2023 (January 25 as per Indian time), the share price of Adani Enterprises was Rs 3442. On January 25, it fell 1.54% to close at Rs 3388. On January 27, the share price fell 18% to Rs 2761. By February 22, it had fallen 59% to Rs 1404. However, later the stock saw a recovery. Short selling means selling shares first and buying them later
Short selling means selling those shares which the trader does not have at the time of trade. These shares are bought later to square off the position. Before short selling, it is necessary to arrange for borrowing or lending shares. In simple words, just like you first buy shares and then sell them, in short selling, shares are first sold and then bought. In this way, whatever difference occurs in between is your profit or loss.
