In the aftermath of the US-based short-seller Hindenburg Research’s report accusing billionaire Gautam Adani’s group of stock manipulation and accounting fraud, there is a rising chorus among the investing community to see this as an opportunity to strengthen corporate governance standards in India.
Investors are tracking the developments very closely and foreign trust has evidently been impacted admitted Devi Yesodharan, co-founder and chief marketing officer of stock analytics platform, Trendlyne. She cited examples of Swiss lender Credit Suisse and Citigroup Inc’s wealth arm which have stopped accepting securities of the ports-to-power conglomerate as collateral for extending margin loans to their clients. Foreign fund outflows was significant in the week following the episode, Yesodharan added.
