• UGI USER
  • Jul 08, 2024
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SEBI CHARGES HINDENBURG FOR PROFITING FROM ADANI REPORT

Why in the news?

  • The Securities and Exchange Board of India (SEBI) charged Hindenburg Research with making “unfair” profits.
  • SEBI accused Hindenburg of colluding to use “non-public” and “misleading” information to induce “panic selling” in Adani Group stocks.
source:medium

About The Securities and Exchange Board of India (SEBI):

  • Establishment: Statutory regulatory body by the Government of India in 1992 through the SEBI Act, 1992.
  • Objective: Regulate the securities market and protect investors.
  • Powers:
    • Quasi-judicial: Pass judgments on frauds and unethical practices.
    • Quasi-executive: Examine accounts, impose rules, take legal actions.
    • Quasi-legislative: Formulate rules on listing, insider trading, disclosures.
Securities Appellate Tribunal:

  • Statutory Body: Established under the Securities and Exchange Board of India Act, 1992.
  • Primary Role: Hears appeals against SEBI orders and adjudicating officer decisions.
  • Additional Jurisdiction: Hears appeals against PFRDA (2014) and IRDAI (2015) orders.

Short Selling: Key Points

  • Investors borrow and sell stock anticipating price decline.
  • Aims: to repurchase at a lower price later.
  • SEBI: Selling stock not owned at trade time.

 

Associated Article:

https://universalinstitutions.com/sebis-proposed-changes-to-insider-trading-provisions/