Why Vikas Khemani would take Hindenburg charge against Sebi Chair with a pinch of salt
Vikas Khemani, Founder, Carnelian Asset Management, says repeated incidences by short-seller Hindenburg, not only in India but in other markets also, are being taken with a pinch of salt. In this case, the narrative is far from the facts. Facts are being manipulated to create a story. The Adanu incident came at a time when there was a lot of scepticism. This is about loss of credibility and markets should not react much to these things.
Hindenburg are short sellers. They look at companies where there is a problem in terms of cash flow or mismanagement or corporate governance standards and go short on it and scare the market because that is the deep dive they do in terms of evidence. But on Saturday, they released completely unsubstantiated conjuncture. I think the damage has been done to the brand.
Vikas Khemani: Absolutely. First of all, everybody’s credibility is determined by their motivation. We noticed in the previous instances also that nothing came out and of course the first time, the market reacted badly. Repeated incidences not only in India but in other markets also, are being taken with a pinch of salt. In this case, the narrative is far from the facts. Facts are being manipulated to create a story. I think market participants can be fooled once but they cannot be fooled all the time.
The previous incident came at a time when there was a lot of scepticism. It is about timing and a lot of things. This is a loss of credibility and I am sure that markets would not react much to these things.
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