Once again after a year and a half, the US based short-seller Hindenburg Research made headlines with its latest allegation against the Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch claiming that the SEBI's chief and her husband, Dhaval Buch, had investments in offshore funds linked to the Adani Group. Hinderburg Research in the latest revealing has made several allegations against the against SEBI Chairperson Madhabi Puri Buch.
Let's take a look at what Hindenburg is and the man who owns it.
What is Hinderburg Research?
Hindenburg Research was founded in 2017 by Nathen Anderson and the name of the firm is a nod to the Hinderburg disaster of 1937, with an aim to uncover and expose corporate fraud and financial disasters before they cause widespread harm to investors.
Who is Nathen Anderson?
Nathen Anderson |
One of the key figure in this firm is far from ordinary - Nathen Anderson. As per various reports, Anderson started as an ambulance driven to his interest in data and analytics eventually led him to a work at FactSet Research System. This was a firm that provided financial data and software to investment professionals which later led him to the foundation of what we now known as 'Hinderburg Research.'
Their work, while controversial, quickly made a name for itself with its forensic approach to financial analysis.
The Nikola Report: A Turning Point
One of the major profile cases and also a turning point that put the firm on the map was its investigation into the Nikola Corporation, a electric vehicle startup in the year September 2020.
Hinderburg there then released a report alleging Nikola of misleading investors about its technology and capabilities. The report led to a massive share drop of Nikola Corporation and triggered investigations by federal authorities, including the SEC.
Why Hindenburg made headlines again recently?
After 2023,Hinderburg again made spotlight in the Indian market with its latest revelation alleging SEBI's chief Madhabi Puri Buch and her husband, Dhaval Buch, had investments in offshore funds linked to the Adani Group.
As per the Hindenburg report, the recent allegations were based on the documents provided by whistleblowers, which reportedly link the SEBI chief and her husband to offshore entities in Bermuda and Mauritius.
