Nirav Sheth, chief executive officer of institutional equities at MK Global Financial Services Inc., said Hindenburg Research’s latest allegations are without merit and he doesn’t expect a reaction from the market.
India’s systems are much stronger than those in developed countries and this can be seen in the country’s response to the Reserve Bank of India, the Securities and Exchange Board and the fintech regulator, he said.
“I’m not a forensic expert but I feel this is a very frivolous act,” Sheth said.
He said such allegations are more likely to backfire on the whistleblowers than to damage the reputation of India or its regulators. “The downfall of the people making these allegations is greater than that of India or the head of the regulator,” he said. “I think it will just die away.”
He said retail investors should not place too much importance on “distant reports emanating from outside the country, raising doubts.” “No one should underestimate the collective intelligence of the market, of retail investors. They are very smart,” Sheth said.
