Six entities under lens for suspicious trading in Adani shares: SC panel

Six entities including four foreign portfolio investors (FPIs) are under lens for suspicious trading in Adani group shares prior to the release of the damning Hindenburg report, the Supreme Court-appointed expert committee has said

NEW DELHI: There was a build up of short positions in the Adani scips prior to the January 24 release of the Hindenburg report, and substantial profits were booked thereafter as stocks crashed, the 178-page report said. A "short" position is generally the sale of a stock one does not own.

Investors who sell short believe the price of the stock will decrease in value. If the price drops, they can buy the stock at the lower price and make a profit.

Hindenburg's report claimed that the Adani empire was the "biggest con in corporate history" engaged in a "brazen stock manipulation and accounting fraud scheme".

Shares of Adani Group, which denied all allegations, likening the US investment firm's report to an attack on India, fell after the Hindenburg report was published on January 24. 

 As the report stirred a political row and petitions were filed for a probe into the empire helmed by billionaire Gautam Adani, the Supreme Court on March 2, constituted the expert committee to investigate if there was any failure to disclose transactions with related parties and if stock prices were manipulated.