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Viceroy Research accused Vedanta Resources of a Ponzi-like financial structure, causing stock prices to plummet.
US short-seller Viceroy Research accused Vedanta Resources Ltd of having a financially unsustainable structure resembling a Ponzi scheme.
The report claims the parent company drains cash from its subsidiary to service its debts, leading to inflated asset values and other financial irregularities.
This led to a sharp drop in Vedanta Ltd and Hindustan Zinc shares by up to 8%.
Vedanta strongly denied the allegations, calling them baseless and aimed at market manipulation.
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Viceroy Research acusó a Vedanta Resources de una estructura financiera similar a Ponzi, lo que hizo que los precios de las acciones cayeran en picado.