Hindenburg shared Adani report with its client two months before publication: SEBI

New Delhi. American short-seller Hindenburg Research shared an advance copy of its report against the Adani Group with New York-based hedge fund manager Mark Kingdon about two months before its publication and took advantage of the volatility in the shares of the group’s companies. The Securities and Exchange Board of India (SEBI) has claimed this. In its 46-page show cause notice sent to Hindenburg, SEBI has explained in detail how the American short seller, New York-based hedge fund and a broker associated with Kotak Mahindra Bank benefited from the massive $ 150 billion fall in the valuation of the shares of 10 listed companies of the group after the publication of the report.

In response to SEBI’s show cause notice, Hindenburg has said that this is an attempt to “silence and intimidate those who expose corruption and fraud committed by India’s most powerful persons”. It has also disclosed that the entity used to bet against Adani’s flagship company Adani Enterprises Ltd. belonged to Kotak Mahindra (International) Limited (KMIL), a Mauritius-based subsidiary of Kotak Mahindra Bank Limited. KMIL’s fund bet on Adani Enterprises Limited for its client Kingdon’s Kingdon Capital Management.

The SEBI notice includes excerpts of ‘chats’ between an employee of the hedge fund and traders of KMIL to sell future contracts in Adani Enterprises Ltd (AEL). Kotak Mahindra Bank has said that Kingdon never disclosed that he had any relationship with Hindenburg nor was he acting on the basis of any price-sensitive information. SEBI had told the Supreme Court-appointed committee last year that it was investigating 13 such external ‘shadow’ entities that had a stake of between 14 per cent and 20 per cent in five publicly traded stocks of the Adani Group.

SEBI has sent notices not only to Hindenburg, but also to KMIL, Kingdon and Hindenburg founder Nathan Anderson. Senior advocate Mahesh Jethmalani, who had earlier spoken on behalf of the Adani Group, has claimed in a post on ‘X’ that Kingdon has links with China. Kingdon is married to ‘Chinese spy’ Anla Cheng. Jethmalani has alleged that Chinese spy Cheng, along with her husband Mark Kingdon, took the services of Hindenburg to prepare a research report on Adani. They took the services of Kotak trading account for short selling of Adani shares and earned millions of dollars through this. This led to a huge decline in the valuation of shares of Adani Group companies.

Disclaimer: CricketInFocus has not edited this news. This news has been published from PTI-language feed.

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