BJP links Soros to 'Hindenburg', accuses Congress of market manipulation
The Bharatiya Janata Party has accused Hungarian-American investor George Soros of being the primary financier of Hindenburg Research, a US-based investment research firm. The party also alleged that the Congress is attempting to destabilize the stock market and harm small investors. These accusations come in response to recent allegations against Securities Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch and her husband Dhaval Buch, made by Hindenburg Research.
Why does this story matter?
The Hindenburg report claims that SEBI Chairperson Buch and her husband, Dhaval, had investments in a sub-fund of the Bermuda-based Global Opportunities Fund. The sub-fund is allegedly connected to illegal share ownership and price manipulation by the Adani Group. Both Buch and the Adani Group have denied these allegations. Buch called the claims baseless, emphasizing that all required disclosures were made before her appointment. The Adani Group dismissed the allegations as desperate and misleading.
'Hindenburg Research''s role in financial investigations
Hindenburg Research, founded by Nathan Anderson, is a firm specializing in forensic financial research. It conducts investigations and analyses on accounting irregularities, unethical business practices, and undisclosed financial issues or transactions. The firm is known for its practice of short selling, where it predicts market price drops based on its investigative reports on various companies. In January 2023, Hindenburg Research published a report accusing the Adani Group of financial irregularities, leading to a significant drop in the group's stock prices.
BJP's accusations against George Soros and Congress
BJP MP Ravi Shankar Prasad has accused Soros, a critic of Prime Minister Narendra Modi and the founder of the Open Society Foundation, of being the main investor in Hindenburg Research. Prasad also accused the Congress of attempting to destabilize the stock market and harm small investors due to their opposition to PM Modi. He stated, "They want to crash the entire stock market...stop the capital investment of small investors and ensure...there should be no economic investment in India."
What Rahul Gandhi said
In response to the report, Leader of the Opposition in Lok Sabha Rahul Gandhi raised three questions in an X post. "Why hasn't SEBI Chairperson Madhabi Puri Buch resigned yet? If investors lose their hard-earned money, who will be held accountable—PM Modi [Prime Minister Narendra Modi], the SEBI Chairperson, or Gautam Adani?" he said. "In light of the new and very serious allegations that have surfaced, will the Supreme Court look into this matter suo moto once again?" he added.
