In an effort to refute allegations made by short-seller Hindenburg Research that have hurt its stocks and bonds, India's Adani Group has hired accounting firm Grant Thornton to conduct independent audits of some of its companies, as per the reports in the media.
The appointment represents the Adani Group's first significant attempt to defend itself following a Hindenburg investigation from January 24 that accused the company of improperly using offshore tax havens and stock manipulation.
Value of 7 listed companies of Adani has decreased over 3 weeks
Investors are nonetheless anxious despite the conglomerate's vehement denials of the accusations under billionaire Gautam Adani's leadership. The market value of the seven listed subsidiaries of the group's shares has decreased by a total of nearly $120 billion during the past three weeks.
Following the Hindenburg investigation, the Adani Group announced last week that it was considering an independent assessment of its internal controls, related party transactions, and legal compliance-related problems. This is the first mention of Grant Thornton's appointment.
The Adani row has reached the SC of India
The Adani vs Hindenburg fiasco, which has led to a rout in its group stocks and caused volatility in Indian markets, has entered the country's apex court. The Supreme Court has started hearing the case, after asking for a response from the solicitor general on an expert panel to investigate the Hindenburg report. It has also directed market regulator SEBI and the Union Home Ministry to register an FIR against Hindenburg Research and its founder Nathan Anderson.
Government stands by agencies
The court had asked the government to respond on the matter after a PIL asked for a panel, headed by a retired SC judge, to probe the Hindenburg report. As for the Finance Minister, she has time and again expressed confidence in the ability of institutions such as SEBI and RBI to look into irregularities.
