SEBI Advises Investors To Remain Calm Before Reacting To Inaccurate Hindenburg Report
SEBI on Sunday advised investors to remain calm and exercise due diligence before reacting to inaccurate reports like Hindenburg.
In a statement, SEBI said that investors should assume that Hindenburg Research may have short positions in the securities covered in the report.
Notably, the allegations made by Hindenburg Research have been duly investigated by SEBI.
“The Supreme Court, in its order of January 3, 2024, noted that SEBI had completed 22/24 investigations. Subsequently, one more investigation was completed in March 2024, and one remaining investigation is close to completion,” said the markets regulator.
During the ongoing investigation, more than 100 summons, around 1,100 letters and emails have been issued to seek information, informed SEBI.
“Further, more than 100 communications have been made seeking assistance from domestic/foreign regulators and external agencies. Also, more than 300 documents containing around 12,000 pages have been examined,” the SEBI informed. The report also questions SEBI's action in issuing a show-cause notice to Hindenburg Research on June 27, 2024.
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