Monday, Jul 08, 2024 07:15 [IST]
Last Update: Monday, Jul 08, 2024 01:44 [IST]
MUMBAI, (IANS): Markets regulator Securities and Exchange Board of India (SEBI), in
its 46-page show-cause notice to Hindenburg Research, has detailed how the US
short-seller shared an advance copy of its critical report on the Adani Group
with New York-based hedge fund manager Mark Kingdon two months before its
public release.
The show-cause notice alleged that Hindenburg, Kingdon's
hedge fund, and a broker associated with Kotak Mahindra Bank benefited from the
over $150 billion decline in the market value of Adani group's 10 listed firms
after the publication of the report.
The markets regulator has also accused Hindenburg of
making "unfair" profits through collusion, using non-public and
misleading information to induce panic selling in Adani Group stocks.
Last week, senior lawyer Mahesh Jethmalani alleged that a
businessman with Chinese links had commissioned the report by Hindenburg
Research which led to shares of Adani Group companies taking a hit.
In a post on social media platform X, Jethmalani claimed
that Kingdon, the American businessman behind Kingdon Capital Management LLC,
had hired Hindenburg to prepare a report on the Adani Group.
The SEBI has issued a show-cause notice to Hindenburg
Research, Nathan Anderson and the entities of Mauritius-based foreign portfolio
investor (FPI) Kingdon for trading violations in the scrip of Adani Enterprises
Ltd, leading up to the Hindenburg report and thereafter.
An investigation by the markets regulator also exposed
that Kotak Mahindra and Hindenburg conspired together to take short positions
in Adani shares.
Kotak Mahindra (International) Ltd, a unit of Kotak
Mahindra Bank, has said Hindenburg was never a client of the group's K-India
Opportunities Fund (KIOF) and Kotak Mahindra International Ltd (KMIL).
