A new report by Hindenburg Research has sparked fears in India that it might be part of a Western plot to destabilize the Modi government. Indian officials and business leaders are worried that the report, which criticizes India's market regulator SEBI and accuses it of failing to act on corruption, could be a move by U.S. entities to undermine Indian institutions. They believe the timing of the report—coming after recent geopolitical tensions and domestic issues—suggests a hidden agenda to create chaos in India's financial markets. With concerns that this could be linked to broader geopolitical maneuvers and economic interests, the situation has created a storm of controversy and speculation.

Hindenburg Research, based in the US, has criticized India's market regulator, the Securities and Exchange Board of India (SEBI). This criticism is being seen by some as a move to erode trust in India's institutions. The Indian government and business circles believe that the real goal of...