New Delhi:
American investment research firm and short selling group Hindenburg Research has announced its closure. Its founder Nathan Anderson has said that he has decided to close Hindenburg Research. After Anderson’s announcement, the country’s senior lawyer and former Attorney General Mukul Rohatgi said that Hindenburg Research was a suspicious organization. He said that the work of Hindenburg Research was something else, it showed something else. He said that his job was to destabilize India’s economy. He said that the research was a mask of Hindenburg Research.
Hindenburg’s mask was research
Rohatgi said this in NDTV’s program Muqabla. Rohatgi has described Hindenburg Research as a suspicious organization. He asked why an organization that calls itself a research institute calls itself a short sheller. He said that research is a different work and short selling in the market is a different work, earning profit from the market by giving any information is a different kind of work. He said that research is the mask of Hindenburg Research, its real function is to create instability. Therefore he made many attempts to destabilize the Indian stock market. He targeted industrial houses, which caused chaos in the market. Due to this, investors suffered huge losses.
On the question of compensation for the loss suffered by investors, Rohatgi said that action in this regard can be taken by Adani Group as well as the Government of India. He said that SEBI, RBI and any organization of investors can also take action. But this is a very long and complicated process. This is not going to be of much benefit. He said that instead of this, SEBI and RBI should take these things seriously and make special rules to deal with them. They should take such steps that if such reports come, there is no impact on the market.
How can SEBI deal with this?
Another guest on the show and former SEBI official JN Gupta said that the strangest thing in this case was how the political parties of India reacted to the report of an unknown man’s organization. These people neither trusted the company nor trusted SEBI nor trusted the bankers. Gupta said that action should be taken against those who created panic after the Hindenburg report and caused losses to investors. He said that SEBI also has a rule regarding this. Everyone should be brought under the ambit of this law and action should be taken.
Aravali Forum chief Rajat Sethi expressed apprehension that other research institutes like Hindenburg will continue to come up in the future. Because in the free world it is not possible to stop them from publishing reports. They will continuously accuse us. He said that in such a situation, it is the big responsibility of SEBI to make small investors aware. He said that SEBI will have to tell investors that they should not make any assumptions about the market until we give any opinion on such a report. Along with this, Indian institutions will have to behave strongly. Sethi said that what is more important is that the opposition should behave responsibly on such reports. He said that the opposition should trust the institutions of its own country like SEBI and Supreme Court more than the reports of foreign institutions.
Hindenburg’s Founder’s Declaration
American investment research firm and short selling group Hindenburg Research has announced its closure. Its founder Nathan Anderson has said that he had informed his family, friends and his team members about this decision at the end of last year. Anderson has taken this decision at a time when there is going to be a change of power in America in just three days. President-elect Donald Trump will take oath on January 20.
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