Hindenburg Research's latest allegations are frivolous, said Nirav Sheth, chief executive officer, institutional equities at Emkay Global Financial Services Ltd. He does not expect any reaction from the markets.
Indian institutions are far more robust than even developed economies, and that speaks volumes in terms of how the country has handled Reserve Bank of India, SEBI and fintech regulators, he said.
"I'm certainly not a forensic expert, but I just sense that it is so frivolous," Sheth said.
The allegations are more likely to backfire on the accusers than damage the reputation of India or its regulatory bodies, according to him. "More than India or the top chair of our regulatory body, it is going to be the downfall of people who made these accusations," he said. "I think it will have a natural death."
Retail investors need not give too much importance to "some remote report originating outside the country and making allegations", he said. "We should not underestimate the aggregate intelligence of the market, of the retail investors. They are very smart," Sheth said.
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