ANOTHER SHORTSELLER TARGETING INDIAN CORPORATE

In January 2023, American shortseller company Hindenburg attacked the Indian conglomerate Adani Group which then led to stocks of the group companies falling by 40-50% overnight and thereby shaking the entire stock market system. Just as the memory of this event was fading away, another American short-seller company Viceroy Research has attacked Vedanta Resource and its Indian group firms

and sending the stocks falling by 2-3% on the same day. The short-seller has made allegations and claims relating to Vedanta’s financial structure. This report raises eyebrows as it came a day before the annual general meeting of Vedanta Ltd. The company has termed the report as a false propaganda. Speaking about the company, Vedanta Group is a global leader in minerals, metals, and energy with operations spanning India, South Africa, UAE, Saudi Arabia, Korea, Taiwan, and Japan. It is also the world’s largest integrated producer of zinc, the fourth-largest global producer of silver, and one of the top producers of aluminium. Recently, the company has proposed a demerger that will result in four independent and pure-play entities across aluminium, iron and steel, power, and oil and gas. Vedanta Ltd will have the base metals as well as certain other existing and new businesses. In view of such shortsellers targetting Indian corporates for their self benefit, it is time for the authorities to ensure that short selling regulations are properly circulated and tightened in order to calm investors and market sentiments, thereby allowing corporates to continue with their permitted and legal corporate practices.