Hindenburg Research, a US-based short seller, has unexpectedly announced its decision to shut down, ending widespread speculation and debate surrounding its activities. Market veteran Ajay Bagga, a former senior banker, said to ANI, describing Hindenburg Research’s business model as operating in a “grey zone”. According to Bagga, the firm walked a fine line between legality and ambiguity by publishing damaging reports on companies while also short-selling their stocks.
“Short sellers hardly ever make sustained profits. That is why the few who do, as for example in 2008, are celebrated so much. The rest make hardly any returns over the long term,” said Bagga.
On Hindenburg Research disbanding, Senior Advocate Mahesh Jethmalani says, “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… He was being used, probably by the democratic deep-state controlled by George Soros. He has now made a run for cover… When you try to destabilize an economy, it is economic terrorism… Given the fact that it was George Soros who was behind this attempted economic devastation of India, the signal seems to be that we can control you by controlling your economy.”
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Hindenburg Research Shuts Down: What Others Said?
“Personally I’m surprised but not unexpected… We had always assumed that the short-selling market was a legal one. Why are these people shutting down right now? Given the non-transparent structure of the company, we don’t know who the employees are, we don’t know who the funders are. For a company that claims to be doing public good, bringing transparency where there is no transparency, their own lack of transparency is pretty worrying,” said Foreign Affairs Expert Abhijit Iyer-Mitra.
“I suspect a very significant illegality out there, and I suspect significant political connections to that illegality, which is why they’re shutting down. I’m convinced there are some outside forces behind Hindenburg. When you have nothing to hide, you are transparent about all your funders, your employees and everything like that. It is only a person who operates an illegality who tries to hide funding. We don’t even know where their office is. They don’t even have a registered office listed on their website,” he added.
“If I say I was surprised, that would not be inaccurate to say because I think things have changed since this rather politically motivated report started coming out from Hindenburg. The time is interesting, four days before President Trump is assuming office as President for the second time. So, obviously, the people backing Hindenburg, Nathan Anderson, is backing away; he is leaving. I think that is a message in itself as to what to expect really because I think it was quite clear that there was an agenda behind…to bring down reputed groups and companies… As far as we in India are concerned, I think we can only be abused at the turn of events that are taking place as far as Hindenburg is concerned,” said former Chief Information Commissioner YK Sinha.
(With ANI Inputs)
