Adani Group Latest News : Big relief to Gautam Adani! Short sellers will be in bad luck, SEBI is close to taking a big decision.
New Delhi: A big update is now coming out in the Adani Group Hindenburg Case. SEBI may investigate the short selling done in the Indian stock market in the last few days. Sources said that there was a lot of pressure on the Indian stock markets in the last few trading sessions. This investigation will reveal the role of short sellers in crashing the market. According to the SEBI discussion paper, short selling is a trade in which a security is sold that is not held by the trader. Short selling has been going on in the market for a long time. It has also been the subject of much debate in the securities markets around the world.
There are different views on short selling.
Proponents of short selling consider it an essential feature of the securities market. Critics, on the other hand, believe that short selling, either directly or indirectly, creates risk and can easily destabilize the market. Whereas, in an efficient futures market, the relationship between the spot price and the future price of the underlying asset is governed by cash and carry and reverse cash and carry arbitrage.
IOSCO has recommended transparency
The International Organization of Securities Commissions (IOSCO) has also reviewed short selling and securities lending practices in the markets. It has recommended transparency in short selling instead of banning it. According to media reports, US prosecutors in 2022 are considering fraud allegations in a wider investigation into hedge funds and research firms that bet against stocks.
Hindenburg is doing short sale
Hindenburg had also said that he was short selling Adani shares. This means that he is taking advantage of the fall in Adani Group Shares. Since then, there was a huge decline in the shares of Adani Group. Hindenburg had said in his report that Adani’s companies are overvalued by more than 85 percent. He had alleged that Adani Group manipulates the prices of shares to go up. Along with this, questions were also raised in the report on the debt of the group.
