BJP's Kirit Somaiya demands strict action against Hindenburg, says 'sole purpose was to pull stock market down'

Somaiya argued that Hindenburg's latest allegations are a misguided attempt to distract from the ongoing investigations into their own actions

The Bharatiya Janata Party (BJP) leader Kirit Somaiya on Monday demanded strict action against Hindenburg for it recent report and said that the 'sole purpose was to pull stock market down.'

In an official statement, Kirit Somaiya, former Member of Parliament and President of the Investor Grievances Forum, has criticised the new report from Hindenburg Research.

The report was released on August 9 and it contains serious accusations against SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch. The Hindenburg report has claimed that the Buchs have been involved in offshore investments linked to the Adani Group’s alleged financial issues.

The report also mentions that the Securities and Exchange Board of India (SEBI) Chairperson had invested $0.87 million in an offshore fund before her appointment, a claim that is part of the broader accusations against her. However, both the Adani Group and the Buchs have vigorously denied these allegations, describing them as baseless and misleading.

In his official statement, Somaiya argued that Hindenburg's latest allegations are a misguided attempt to distract from the ongoing investigations into their own actions.

Another Hindenburg report, a poor attempt to destabilize discredit Indian capital market and regulatory judiciary system

We want investigation against #HindenburgResearch against "Short Sale" in Fast Track @BJP4India pic.twitter.com/ByxWneMEA7

— Kirit Somaiya (@KiritSomaiya) August 12, 2024

According to him, the research firm aims to manipulate market sentiment and profit from market declines through short-selling strategies. He believes that the report is a deliberate effort to undermine SEBI’s authority and derail its enforcement actions against Hindenburg.

SEBI has already completed investigations into 22 of 24 cases related to the Adani Group, with the remaining two investigations nearly finished.

The statement further said that the Supreme Court has noted that SEBI had completed investigations into 22 out of 24 matters related to the Adani Group. The court directed SEBI to complete the remaining two investigations.

"It has further directed that it cannot enter into the domain of the regulatory regime and that the report by Hindenburg or anything like that" cannot become the basis of a separate probe," the statement reads.

"We request Government of India to take strict action against the Hindenburg for releasing false report with sole purpose of pulling stock marketdown by spoiling the sentiments of investors so that it can make windfall gain," it further said.

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