Hindenburg comes down heavily on governance in Indian companies, calls it a ‘myth’

- Hindenburg Research published an article about Adani Group, a major Indian conglomerate with multiple $ADANI stock tickers - Accuses Adani Group of financial irregularities and corporate governance issues - Hindenburg Research responds to queries from India's Securities Regulator SEBI - Article provides detailed analysis and evidence of alleged misconduct by Adani Group - Investors advised to be cautious when investing in Adani Group stocks - Hindenburg Research presented evidence in January 2023 that Indian conglomerate Adani Group was involved in fraud - Adani did not directly address the findings, instead offering deflections and blanket denials - Big-4 auditor Deloitte resigned from auditing Adani Ports due to undisclosed related-party transactions - At least 40 independent media investigations corroborated or expanded on Hindenburg's findings - SEBI, the Indian securities regulator, issued a show cause notice to Hindenburg with alleged misrepresentations - SEBI failed to find any factual inaccuracies in Hindenburg's research on Adani - Hindenburg had one investor partner in the Adani short, making only $31,000 profit - Hindenburg's research aimed to expose fraud and corporate wrongdoing in the public interest - SEBI's response to Hindenburg's research raises concerns about corporate governance and regulatory enforcement in India - Hindenburg continues to stand by their research and encourages transparency in dealings with public companies.

🚨 Reddit sentiment: negative - Most comments express a negative outlook on the governance of Indian companies, pointing out corruption and lack of shareholder value generation. Summarized comments: - Expectations around Indian companies are low, similar to Chinese companies, with a belief that their goal is to benefit insiders rather than generate shareholder value - Comparison between Indian companies' oversight and the SEC, implying the latter to be more stringent - Criticism of incompetence in governance, attributed to corruption - Satirical comment about Hindenburg's financial advice