Trinamool Congress MP Mahua Moitra on Friday weighed on the Adani-Hindenburg matter by highlighting senior lawyer Cyril Shroff’s link to the Adani family. Shroff, a corporate lawyer, is the managing partner of law firm Cyril Amarchand Mangaldas.
Moitra said it’s a potential conflict of interest that Shroff serves on market regulator SEBI’s panel on corporate governance and insider trading when his daughter (Paridhi Adani) is married to Karan Adani, son of Adani Group chairman Gautam Adani.
On Twitter, Moitra said “Shroff should recuse himself” if SEBI is examining US short seller Hindenburg Research’s allegations against Adani Group.
“Greatest respect for ace lawyer Cyril Shroff but his daughter is married to Gautam Adani’s son. Shroff serves on SEBI’s Committee on Corporate Governance & Insider Trading. If at all @SEBI_India is examining Adani issue, Shroff should recuse himself. Perceptions are Reality,” tweeted Moitra.
Hindenburg’s report said key listed Adani companies had “substantial debt” and shares in the seven listed firms had a downside of 85% due to what it called sky-high valuations.
The Adani Group has called the report baseless and said over the past decade, its companies have “consistently de-levered”.
The listed Adani firms now have a combined market value of $107.5 billion, versus $218 billion before the report.
Moitra on Friday also questioned why the National Stock Exchange (NSE) was not reevaluating the index membership of Adani Group firms’ stocks even after S&P Dow Jones said it will remove Adani Enterprises, the Adani group’s flagship firm, from sustainability indices from February 7. While Adani Enterprises is part of the coveted Nifty50 index, Adani Total Gas, Adani Transmission, and Adani Greens are part of the Nifty Next 50 index.
Moitra, MP from Krishnanagar, West Bengal, tweeted: “S&P Dow Jones removes Adani Enterprises from Dow Jones indices due to charges of stock manipulation & accounting fraud. Why is @NSEIndia not reevaluating index membership of Adani stocks when international ones are?”
On Friday, S&P Dow Jones Indices, in a brief note, said: “Adani Enterprises (XBOM: 512599) will be removed from the Dow Jones Sustainability indices following a media & stakeholder analysis triggered by allegations of stock manipulation and accounting fraud.”
The news came amid NSE’s decision to place three Adani group stocks namely Adani Enterprises, Adani Ports & SEZ, and Ambuja Cements under additional surveillance measures framework.
Stocks of Adani Total Gas, Adani Transmission, and Adani Green Energy have fallen by over 50 % in the last 10 days. The Nifty Next 50 index, which has a 9 % concentration of these stocks, has fallen 8 %.
Leave a Reply