SEBI revealed that Hindenburg Research, Mark Kingdon’s hedge fund, and a broker associated with Kotak Mahindra Bank profited from the over USD 150 billion decline in the market value of Adani group’s 10 listed firms post-publication of its critical report
Hindenburg Research, a US short seller, shared an advance copy of its critical report on the Adani group with New York-based hedge fund manager Mark Kingdon about two months before its public release, profiting from a deal to share gains from the resulting share price movements, according to SEBI. In a 46-page show cause letter, the Securities and Exchange Board of India (SEBI) outlined how Hindenburg
In order to cause “panic selling” in Adani Group stocks, Hindenburg was allegedly utilising “non-public” and “misleading” information to make “unfair” gains through “collusion,” according to Sebi.
In response, Hindenburg released a statement claiming that the Sebi notice was an attempt to “silence and intimidate those who expose corruption and fraud perpetrated by the most powerful individuals in India.” They also made the notification public. They disclosed that Kotak Mahindra (International) Ltd, a subsidiary of Kotak Mahindra Bank Ltd. with headquarters in Mauritius, owned the vehicle that was used to wager on Adani Enterprises Ltd., the company’s main company.
The fund managed by KMIL made investments in Adani Enterprises Ltd. on behalf of Kingdon’s Kingdon Capital Management.
On social media, senior attorney Mahesh Jethmalani, who has previously represented the Adani group, asserted that Kingdon had ties to China and claimed that his wife, Anla Cheng, was a “Chinese spy” who hired Hindenburg for the Adani report, enabled short selling through Kotak, and made millions of dollars.
