Hindenburg vs Adani: Short selling not shareholder activism, says InGovern

Short selling is not shareholder activism and such campaigns could be disruptive for management and companies, corporate governance firm InGovern has said in a note.

“Short sellers are not held in high regard in global capital markets and even in the USA, many short sellers, including Hindenburg, are under investigations by the SEC (Securities and Exchange Commission) and DoJ (Department of Justice), as the short sellers are thought to achieve their objectives at all costs and detrimental to the interests of other investors,” said the voting advisory firm.

On Wednesday, US-based Hindenburg—known for its short-selling bets—made allegations of market manipulation and accounting fraud against India’s Adani Group.