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SEBI starts hearings over $22.25 million Adani shorts
Livemint··4 Sept
SEBI has begun hearing representations to recover gains from trades linked to prior knowledge of Hindenburg's 2023 Adani report, sources said. In 2024, SEBI said six entities gained $22.25 million from short-selling trades. It named Kingdon Capital Management and a Mauritius Kotak-linked fund. Hindenburg previously denied wrongdoing. SEBI dismissed Hindenburg's stock-manipulation claims against the Adani Group.
Prism
What It Means For You
- SEBI is pursuing recovery from overseas parties over India-traded Adani-linked shorts.
- Hearings have started more than two years after the regulator set out its case.
- SEBI argues the trades used non-public information and breached anti-fraud rules.
What's Happening
- In 2024 SEBI said Kingdon built shorts through a Mauritius Kotak-linked fund before Hindenburg published.
- SEBI detailed a profit-sharing deal between Hindenburg and Kingdon and a $22.25 million gain for six entities.
- Hindenburg called SEBI's assertions nonsense and denied wrongdoing.
How the offshore fund fits in
- SEBI opposed Mauritius insolvency steps for K India Opportunities Fund Class F to protect assets.
- Mauritius' Supreme Court appointed a Quantuma managing director as receiver in June, sources said.
- Adani Group denied wrongdoing after Hindenburg's 2023 report; SEBI later dismissed manipulation claims.
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