Senior advocate Mahesh Jethmalani has slammed US-based short-seller Hindenburg Research’s latest claims as “pathetic damp squib”. “The announcement prior to its alleged big revelation itself reveals its motive: to destabilise India’s stock markets. The pre-publicity ill behoves a reputed “research analyst”,” read his post on X, formerly Twitter. “There being nothing new against the Adani group,” the US shortseller is targeting SEBI’s chairperson Madhabi Puri Buch, Mr Jethmalani added.

#Hindenburg‘s “Something big” is a pathetic damp squib, The announcement prior to its alleged big revelation itself reveals its motive: to destabilise India’s stock markets. The pre publicity ill behoves a reputed “research analyst “. As regards the “big” something there is… https://t.co/QeKNO4gEFp

— Mahesh Jethmalani (@JethmalaniM) August 11, 2024

Hindenburg’s Saturday’s allegations has been slammed by the industry, the ruling BJP and others.

The Adani Group has termed the allegations “malicious, mischievous and manipulative” . The group said it has no commercial relationship with SEBI chairperson or her husband.

“For a discredited short-seller under the scanner for several violations of Indian securities laws, Hindenburg’s allegations are no more than red herrings thrown by a desperate entity with total contempt for Indian laws,” the group said in an exchange filing.

Last month, market regulator SEBI (Securities Exchange Board of India) had sent a show-cause notice to Hindenburg and its sole beneficial owner Nathan Anderson. The regulator had flagged violations by Hindenburg and Anderson under the SEBI Act, SEBI’s Prevention of Fraudulent and Unfair Trade Practices regulations, and SEBI’s Code of Conduct for Research Analyst regulations.

“SEBI had issued a notice to Hindenburg seeking information regarding the circumstances of the Adani short sale as it was entitled to. Instead of responding to these Hindenburg has chosen to attack its Chairperson on the ground of conflict of interest,” Mr Jethmalani said.

“The picture thus is one of a US based profiteer who made millions of dollars at the cost of Indian retail investors now hedging questions legitimately asked by the Indian regulator and brazenly defaming the latter without answering its questions. This reeks of colonial arrogance of days bygone,” his post read.

“It is time the govt of the day turned its serious attention to these anti nationals who have no other agenda but to  disrupt  India’s social fabric, distort its polity and now devastate its economy,” he added.