New Delhi, January 16: Hindenburg Research, the US-based short seller, has announced its decision to shut down operations, sparking a heated debate among experts. Founder Nate Anderson cited a desire to step back from the intensity of his work and focus on other aspects of life.
Anderson shared this decision through an official statement. He said, "As I've shared with family, friends and our team since late last year, I have decided to disband Hindenburg Research."
He also added "So, why disband now? There is not one specific thing--no particular threat, no health issue, and no big personal issue."
However, experts argue that the timing of the decision raises suspicions, coming days before Donald Trump's assumed presidency. Some believe it may be part of a broader scheme to destabilize markets.
The development has sparked accusations of economic terrorism, with senior advocate Mahesh Jethmalani branding it a "run for cover" in light of alleged connections to financier George Soros.
On Hindenburg Research's disbanding, Jethmalani said, "Either he has already been sounded out by investigating authorities in the US or he fears that he will be investigated for his role in the attempt to shake India's economy by bare hammering of Adani shares."
"He was being used probably by the democratic deep-state controlled by George Soros. He has now made a run for cover. When you try to destabilise an economy, it is economic terrorism. Given the fact that it was George Soros who was behind this attempted economic devastation of India, the signal seems to be that we can control you by controlling your economy," he said.
Former Chief Information Commissioner YK Sinha believes that there was an agenda behind bringing down reputed groups and companies.
On Hindenburg Research disbanding, Sinha said, "If I say I was surprised, that would not be an accurate assessment because I think things have changed since this rather politically motivated report started coming out from Hindenburg. The time is interesting, four days before President Trump is assuming office as President for the second time. So, the person backing Hindenburg, Nathan Anderson, is backing away; he is leaving. I think that is a message in itself as to what to expect really because I think it was quite clear that there was an agenda behind...to bring down reputed groups and companies..."
Advocate PR Ramesh, a prominent lawyer, (expert in SEBI matter) provided his expert opinion on the Hindenburg issue, particularly focusing on SEBI regulations and the ongoing investigation.
He stated, "The show-cause notice issued by SEBI and the ongoing investigations could have played a role in the shutdown of Hindenburg Research. It is crucial for authorities to thoroughly investigate whether there was any conspiracy to deliberately destabilise Indian markets."
He further emphasized the importance of the Indian Supreme Court's intervention, adding, "Fortunately, the Indian Supreme Court took the correct stand, which ultimately helped protect the stability of Indian markets from further damage."
In January 2023, Hindenburg published a report accusing the Adani Group of financial irregularities, leading to a significant drop in the company's stock price. The group at the time had rubbished these claims. The Adani group has repeatedly denied all the accusations in the Hindenburg Research report.
In June this year, while addressing the Annual General Meeting (AGM) of Adani Enterprises, Group Chairman Gautam Adani said they were "faced with baseless accusations made by a foreign short seller, that questioned our decades of hard work."
"In the face of an unprecedented attack on our integrity and reputation, we fought back and proved that no challenge could weaken the foundations on which your Group has been established," he told the gathering.
