look news india
SEBI has made sensational revelations in the investigation of the report published by Hindenburg against the Adani Group. SEBI has alleged that American short-sellers Hindenburg Research had shown its client Mark Kingdon two months before the Adani Group report was published.
Mark Kingdon is a hedge fund manager in New York. Hindenburg earned crores after the publication of Hindenburg's report against the Adani Group. SEBI has sent a notice to Hindenburg in this case, which revealed that Hindenburg, a New York-based hedge fund manager and broker associated with Kotak Mahindra Bank, earned crores of rupees when the market value of shares of 10 companies of the Adani Group fell by more than 150 billion dollars after the release of a report.
Attempts to intimidate whistleblowers
In response to the SEBI notice, Hindenburg said it was an attempt to silence and intimidate whistleblowers of corruption and fraud committed by India's most powerful people. He revealed that Adani's parent company Adani Enterprises Ltd. is a Mauritius subsidiary of Kotak Mahindra Bank affiliated with Kotak Mahindra International Ltd. (KMIL), the company used to place the counter bets. KMIL's funds invested in Adani Enterprises for its client Kingdon's Kingdon Capital Management.
Hindenburg made millions by spreading misinformation
SEBI accused Hindenburg of short selling Adani Group shares by spreading non-public and misleading information, from which Hindenburg made crores.
Adani Enterprises share price fell and lost Rs. 183 crore
Prior to the release of the Hindenburg report, Adani Enterprises Limited (AEL) shares were being sold short in derivatives. After the release of the report, the AEL share price fell by 59 per cent between January 24, 2023 and February 22, 2023. The share price per share fell to Rs. 3433 from Rs. 1404. 85. Prior to the release of the report, a trading account was opened by K. India Opportunity Fund Class F and short selling was done in AEL shares. Excluding the short position resulted in a profit of Rs 183.23 crore.
The King kept his relationship with Hindenburg a secret
In its notice, SEBI included excerpts of conversations between hedge fund employees and traders at KMIL, in which the sale of AEL futures contracts was discussed. Kotak Mahindra Bank clarified that Kingdon never disclosed that he had any relationship with Hindenburg and that he made trades based on sensitive information related to share prices.