Explained: American Viceroy does a Hindenburg on Anil Agarwal's Vedanta. Here's what you need to know

Vedanta shares crashed up to 7.7% after U.S.-based short-seller Viceroy Research accused its parent, Vedanta Resources, of running a Ponzi-like scheme to service debt.

The 87-page report alleged financial manipulation, forced dividend payouts, inflated assets, and off-balance-sheet items draining Vedanta Ltd to prop up its parent.

Viceroy claimed massive investment announcements were used to raise funds that never materialized into real projects and dismissed the proposed demerger as ineffective.

The Vedanta Group denied the claims, calling the report baseless and malicious, and aimed at false propaganda to manipulate market sentiment.