Akshata Sharma
Share
US-based Hindenburg Research, which received a show cause notice from market regulator SEBI regarding its Adani Report, has now responded to the notice.
In a blog post, the US-based short seller stated that the research firm was short on Adani shares "through a deal with an investor partner who was indirectly short Adani derivatives through a non-Indian, offshore fund structure."
Hindenburg alleged that SEBI did not name the private lender involved in short-selling Adani group shares.
The blog post claims that India's Kotak Mahindra Bank, founded by billionaire Uday Kotak, created the offshore fund that was used by its investor partner to short Adani shares.
"Kotak Bank, one of India's largest banks and brokerage firms founded by Uday Kotak, created and oversaw the offshore fund structure used by our investor partner to bet against Adani," it said.
Hindenburg mentioned that SEBI only referred to the K-India Opportunities fund and used the acronym "KMIL" to mask the "Kotak" name.
"We suspect SEBI's omission of Kotak or any Kotak board member may be to protect yet another powerful Indian businessman from scrutiny, a role SEBI seems to embrace," Hindenburg added.
--Advertisement--
