NEW DELHI: The Adani Group and the brokerage IIFL have denied the allegations made against them by the US-based short-seller Hindenburg Research.
Although the mutual funds lobby Amfi (Association of Mutual Funds in India) is not accused of any wrongdoing, it issued a detailed statement defending the regulatory robustness of the domestic market and highlighting the contributions of the current Sebi chief, who is at the centre of the allegations.
Rejecting claims that the domestic financial markets are manipulated and on shaky ground, Amfi stated in a detailed note issued on Sunday, “The robust performance of our markets and the strength of our financial sector reflect a well-regulated environment that prioritizes investor protection and adherence to global best practices. Over time, the regulator Sebi has developed a well-functioning market trusted by both local and global investors, with several measures implemented under the current leadership of Sebi Chairperson Madhabi Puri Buch.”
“The external comments on the regulator not only attempt to undermine Chairperson Madhabi Puri Buch’s contributions to the capital market but also undermine our economic progress. Creating a trust deficit in the market ecosystem must be recognized for what it truly is—attempts to sensationalize by connecting unrelated past events.”
Amfi warned that if such comments are “left unchecked, they could create unnecessary obstacles to our growth. These statements, lacking context and understanding of our regulatory environment, seek to tarnish the hard-earned achievements of our nation.”
Investors and partners, both domestic and international, should be reassured that our financial system is secure, transparent, and designed to foster growth and innovation with high integrity, driven from the top of the institution, Amfi said. It added that our regulatory framework not only aligns with global best practices and standards but also ensures the protection and confidence of even the smallest investors.
The Adani Group, for its part, has dismissed the allegations as “merely a recycling of discredited accusations that have been thoroughly investigated, proven baseless, and dismissed by the Supreme Court in January 2024.”
The statement further claimed that the group's overseas holding structure is fully transparent, with all relevant details disclosed regularly in public documents. It also clarified that Anil Ahuja, mentioned in the allegations, was a nominee director of three investment funds in Adani Power during 2007-08 and later served as a director of Adani Enterprises until 2017.
"The Adani Group has absolutely no commercial relationship with the individuals or matters mentioned in this calculated effort to malign our standing," it asserted.
The statement described Hindenburg as a "discredited short-seller" under investigation for multiple violations of securities laws and dismissed Hindenburg's allegations as "red herrings" thrown by a desperate entity with "total contempt for Indian laws."
Meanwhile, IIFL stated that its offshore fund IPE-Plus Fund 1 is fully compliant and regulated. Launched in October 2013 and operating until October 2019, IPE-Plus Fund 1 made no investments in Adani Group shares, either directly or indirectly through any fund. At its peak, its AUM reached around $48 million, with over 90 percent of the fund consistently invested in bonds, and no investor was involved in the fund's operations or investment decisions.
Regarding the holdings of Madhabi Buch and Dhaval Buch in the fund, IIFL said their holdings were less than 1.5 percent of the total inflow into the fund.
All other points mentioned in the report are repetitive and have been adequately addressed in previous communications. 360 One Asset Management reaffirms that all its funds are fully compliant with applicable regulations.