The Hindenburg Research report on the Adani Enterprises saga has revealed many proverbial ‘naked emperors’, especially India’s stock exchange regulator, the Securities and Exchange Control Board and the Enforcement Directorate.
The debate on the Hindenburg revelations in January 2023 has focused on the sharp decline of Adani stocks and counter-allegations of conspiracy theories to derail the India growth story. However, this share price correction was a bubble waiting to be pricked.
The Adani saga also reignited age-old debates on crony capitalism, especially in Simon Commander and Saul Estrin’s new book Connections World. Crony capitalism and its significant downsides are not new in India and many other markets.
