Fraud cannot be obfuscated by nationalism: Hindenburg on Adani ‘loot’

[Paitoo]

Hindenburg saw Adani stocks were overvalued so he created a BS report and earned money, thats it.

Short sellers are important to the stock market. They bring in the necessary correction otherwise retail investors can be lulled into thinking that the stock will always climb, therefore never selling and creating a bubble that is devoid of fundamentals. A crash at a much later point can be more hazardous.

One needs to remember that creating subsidiaries in places like Mauritius, Cayman Islands, Bahamas etc and linking them in a labyrinthine manner is done to not just to avoid taxes, but also enable dodgy dealings between group companies. These structures can get so complex that even sharp minds cannot decipher what is exactly happening. Why is that only certain type of companies feel the need to do this? There are plenty of companies in India that are simply registered in India, pay taxes and carry out business normally.

 

[StraightEdge]

FT now has a 22min documentary on the Adani story. Do watch it, some interesting talks.

Gautam Adani: the Indian billionaire vs the short seller | Financial Times (ft.com)