Hindenburg founder Nate Anderson said the short seller will disband
The announcement by US short seller Hindenburg Research, which targeted the Adani Group, that it will shut down has raised questions over the harm it did to investors in India.
Hindenburg founder Nate Anderson on Wednesday said the short seller has completed the projects it was handling. The announcement comes just days before President-elect Donald Trump's inauguration event.
There is speculation Hindenburg is disbanding to avoid a possible India-US joint investigation.
Senior lawyer Sidharth Luthra told NDTV that Mr Anderson deciding to disband Hindenburg also comes after the Supreme Court ordered all agencies relevant to the matter to look into the issue.
"After the Supreme Court ordered an investigation, it's quite natural for anyone to ask 'why is he shutting it down?' If he is truthful, if he is so sure, then join the agencies in the investigation. I don't think it is a good thing for Hindenburg to disband," Mr Luthra told NDTV.
Political analyst Rajat Sethi said the foreign firm operating outside of India's jurisdiction tried to influence India's markets and that led to investors' loss.
On the political implications of the attack by Hindenburg on the Adani Group, Mr Sethi told NDTV, "It is a sad day for investors who all got spooked by this firm sitting outside... attempting to influence our market. We fell for it and we lost a considerable amount of money. It's a sad day for the Opposition also. They tried to outsource politics, they tried to use international organisations instead of relying on our own agencies, the Supreme Court, investigative organisations..."
More critical questions have been raised in the wake of Mr Anderson's announcement. Does Hindenburg's disbanding prove the shoot and scoot nature of the organisation? What does it say about those who believe in the Hindenburg report? Was it a conspiracy of the deep state and foreign elements? Can Hindenburg still be punished? Or was it a big foreign interference in the 'India Story'?
Rajya Sabha MP and senior lawyer Mahesh Jethmalani alleged Hindenburg's disbanding signals deeper implications, suggesting possible scrutiny by the US authorities or fear of investigation for its role in targeting Adani Group firms.
Mr Jethmalani linked the development to the "democratic deep-state" led by billionaire George Soros, terming it an act of "economic terrorism" aimed at destabilising India.
"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," Mr Jethmalani told news agency ANI.
Adani Group Chairman Gautam Adani at the annual general meeting in June said the group "faced 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 said.
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
