New Delhi, Feb 3 (UNI) A petition has been filed before the Supreme Court yesterday seeking directions to Securities and Exchange Board of India (SEBI) and the Union Home Ministry to conduct a thorough probe and register a First Information Report (FIR) against founder of Hindenburg Research, Nathan Anderson, and his associates in India for "exploiting innocent investors", of its recent report on Adani Group.
The petition of advocate Manohar Lal Sharma, filed before the Supreme Court said that Anderson and his associates in India hatched a criminal conspiracy by short selling Adani stocks in hundreds of billion dollars before 'concocting' a research report related to the Adani Group in order to crash the stock market and square up their short sell position at the lowest rate.
Sharma's petition, filed before the Supreme Court sought directions to conduct an enquiry to prosecute and register an FIR against Anderson and his associates under sections 420 (Cheating) and 120-B (Criminal Conspiracy) of the Indian Penal Code (IPC) for 'exploiting innocent investors via short selling under the garb of artificial crashing via short selling'.
"They secured billions of profits by butchering citizen of India. However, SEBI did not suspend trading in the stock specially qua to the Adani group of the companies and allowed short sellers to exploit innocent investors," the plea of Sharma, filed before the Top Court, said.
He also sought recovery of Anderson's alleged turnover with penalty to compensate investors in the interest of justice.
Sharma also in his petition prayed to the Apex Court for a declaration that short selling is an offence of fraud against the investors to be prosecuted under section 420 of the IPC read with section 15-HA (Penalty for fraudulent and unfair trade practices) of SEBI Act.
UNI SM GNK