NEW DELHI: Hindenburg Research founder Nathan Anderson on Friday said that his firm has never been banned, its bank account never seized and that it is not under any investigation.
Anderson's clarification came in response to a report against his firm which alleged that Hindenburg was banned by the Financial Industry Regulatory Authority (FINRA), it cannot publish on NYSE-listed companies and is under investigation.
In a tweet, Nathan, popularly known as Nate, attached a news report "debunking" such "lies" and wrote: "We are banned by FINRA (never); Had bank accounts seized (no); Can't publish on NYSE-listed co's (this isn't a thing); Are under investigation (no)."
Anderson is an activist short seller from the US and he founded Hindenburg Research in 2017.
Since it published a scathing 100-plus-page report alleging that Adani pulled "the largest con in corporate history" on January 24, there have been comments on social media that Hindenburg had "three criminal inquiries" in the US and that it was banned by the Financial Industry Regulatory Authority (FINRA), its bank accounts frozen and it has been barred from publishing any report on firms listed on the New York Stock Exchange.
Hindenburg's report led to over $100 billion rout in stocks of Adani Group companies since January 24, despite the group's pushback efforts.
Hindenburg engages in activist short selling, which involves selling borrowed stocks in hopes of buying them back at a lower price later. If prices fall expectedly, short sellers make a killing.
Its past targets included Lordstown Motors Corp (US), Kandi (China), Nikola Motor Company (US), Clover Health (US) and Tecnoglass (Colombia).
The Securities and Exchange Board of India (Sebi) has already started investigating Adani Group's links to some of the investors in the conglomerate's aborted $2.5 billion share sale, a Reuters report said.
The watchdog is investigating relationships between Adani and at least two Mauritius-based firms -- Great International Tusker Fund and Ayushmat Ltd. -- which participated as anchor investors, among others, the report added.
Meanwhile, Moody's downgraded the ratings outlook for some Adani Group companies, while MSCI said it would cut the weightings of some in its stock indexes.
(With inputs from agencies)
