THE NEW AGE MARKET SABOTEURS

WHY INDIA MUST ACT BEFORE IT’S TOO LATE

- By Vinod Kumar Bansal

ON 9 JULY, 2025, yet another attack on an Indian corporate giant was launched, not by a competitor, regulator, or investigative journalist, but by a foreign-based short-seller hiding behind the cloak of “activist research.” Viceroy Research, a little-known US-based outfit with a controversial past, published a sensational report titled Vedanta-Limited Resources.

It alleged that Vedanta Resources Ltd., the parent of Vedanta Ltd., had weakened its finances by extracting funds from subsidiaries to service its debt. But the intent behind this report was not honest criticism or investor awareness. It was manipulation.

This is not the first time India has been targeted. Just last year, Hindenburg Research caused massive market turmoil with its questionable report on the Adani Group.

In both cases, reports were released without prior communication with the companies in question, without providing them an opportunity to respond, and without following Indian regulatory norms.

Short Selling with Hidden Intent

There is a simple yet dangerous formula used by these so-called research firms: take a short position in a stock, publish a damaging report, amplify it through media and social networks, and cash in as the stock crashes. The report may be partially true, grossly exaggerated, or outright misleading, but the goal remains the same, profit from panic. Retail investors, institutional funds, and public-sector institutions like LIC suffer while the short-seller celebrates.