Viceroy Research, a short-seller that has targeted two South African companies in 2018, is profiting unethically from its reports and has escaped sanctions from local regulators because it is domiciled elsewhere, South African Reserve Bank governor Lesetja Kganyago says Viceroy rose to prominence just over a year ago when it published research on Steinhoff soon after the global retailer reported accounting irregularities that triggered a share-price collapse. That report detailed a number of third-party transactions that were used to inflate asset values — deals that are under investigation by auditors at PwC. It then issued a report on Capitec Bank in January, causing the lender’s shares to fall as much as 25%, although the stock has since recovered all its losses. On Wednesday, it took aim at property firm Nepi Rockastle, prompting a one-day drop of 14%, some of which has been regained. Both Capitec and Nepi refuted the Viceroy’s reports as misleading, while regulators described V...

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