The Securities and Exchange Board of India (Sebi) has issued showcause notices (SCNS) to American short-seller Hindenburg Research, US-based hedge fund manager Mark Kingdon, and four others, accusing them of colluding to use non-public information to build short positions against the Adani group.
According to the SCN, as disclosed on the Hindenburg Research's website, Kingdon through a Mauritius-based fund established short positions ahead of the release of Hindenburg's Hindenburg was never a client scathing report on the Gautam or investor, clarifies KMIL Adani-led conglomerate which resulted in a $150 billion market value wipeout. It said the report "misled" readers and caused "panic" in Adani group stocks, "deflating prices to the maximum extent possible and profit from the same."
Sebi's probe found that these positions were squared off after the publication of the report, netting a "significant" profit of ₹183 crore. New York-based Hindenburg Research has dismissed Sebi's notice as "nonsense" and claimed that it barely broke even a total of $4.1 million in gross revenue through gains related to Adani shorts.
After receiving the 46-page SCN, Hindenburg Research, in a blog post on Tuesday, alleged: "Our understanding from discussions with sources in the Indian market is that Sebi's surreptitious aid of Adani commenced almost immediately post-publication of our January 2023 report."
According to Sebi's findings, Kingdon allegedly entered into an agreement with Hindenburg in May 2021 to share 30 per cent of the profits from trading in researched securities. The SCN claims the disclaimer in Hindenburg's report, stating it held positions only through non-Indian traded securities, was misleading, as it concealed its direct stake in profits from Kingdon's positions.
Bu hikaye Business Standard dergisinin July 03, 2024 sayısından alınmıştır.
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Bu hikaye Business Standard dergisinin July 03, 2024 sayısından alınmıştır.
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