Hindenburg disclosed that it holds short positions in Adani companies through U.S.-traded bonds and non-Indian-traded derivatives.
Allegedly improper use of tax havens and flagging concerns about debt levels.
The Adani Group has denied Hindenburg's report and threatened legal action.
The Adani Group has cancelled the much hiped 20000 crore FPO.
The Adani Group shares are hitting lower circuits , Adani Enterprise shares have fallenmore than 30%.
The Adani Group has said that the confidence of its shareholders are paramount , and will be returning money raised from fully subscribed FPO.
Modi government is on its toes regarding the recent debacle in share market and has instructed various agencies to probe validity of allegations from Hindenburg.
RBI has instructed an enquiry and sought details from Adani Group and various market authority on Investors exposure.
It has been alleged that Hindenburg has been minting huge money from this report, and timed this at a time when Budget and FPO were being projected, bringing down investors confidence.