The government considered the Hindenburg report an intentional effort to damage India's markets and SEBI's credibility. SEBI chairperson Madhabi Puri Buch dismissed the allegations, asserting that all necessary disclosures were made.
Hindenburg accused Buch and her husband of having conflicts of interest with investments connected to the Adani Group but lacked solid evidence.
A government source described Hindenburg's report as a fresh attempt to "create a smokescreen".
The source suggested this could be part of a broader attempt to discredit the regulator while the Indian stock market is performing well due to healthy macroeconomic fundamentals and strong growth prospects. The source argued that these actions aimed to affect Indian markets have been repetitive, but noted that the market is now robust enough to handle such attacks.
The government views the latest Hindenburg report as a deliberate attempt to 'destroy' India's primary and secondary markets.
They believe it's an attack on the regulator's credibility, stirred up by revisiting a matter that they consider irrelevant, according to analysts.
"There have been a series of regulatory actions to improve the overall functioning of the markets and the regulator itself has not shied away from cautioning investors, wherever it sees pressure building up," said another official. This official mentioned that Sebi has submitted its probe findings related to earlier allegations by Hindenburg to the Supreme Court. - 'Times of India'
"Investors should remain calm and exercise due diligence before reacting to such reports. Investors may also like to take note of the disclaimer in the report that states that readers should assume that Hindenburg Research may have short positions in the securities covered in the report," Sebi said in a statement on the Hindenburg report.
The BJP has alleged that the Congress and the Hindenburg, the US-based short-seller, want the Indian market to crash but the country’s market, companies and investors are standing on strong fundamentals.
BJP leader Gourav Vallabh told media in New Delhi that the market dropped only by 0.7 per cent even after all the hue and cry in the report.
He alleged that Congress and its leader Rahul Gandhi are opposing the growing Indian economy in their quest to oppose Prime Minister Narendra Modi.
He questioned why Congress leaders started posting on social media about the report within seconds of its release.
The BJP leader also said it is not a research report but Hindenburg’s conspiracy to malign the Indian economy and Congress is supporting it.
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