New twist in clash between US short seller Hindenburg and India’s Adani
Al Jazeera
India’s securities regulator has alleged Hindenburg colluded with another entity to help it short Adani Group.
Hindenburg Research has denied allegations by India’s securities regulator that it colluded with a United States asset manager to use nonpublic information to set up a short bet against Adani Group last year, which if proven would breach the country’s rules.
Hindenburg on Monday posted on its website a copy of a 46-page “show cause” notice from the Securities and Exchange Board of India (SEBI) outlining the allegations in the latest twist to a saga that began last year when the US-based short seller alleged improper business dealings by Adani.
The notice said six entities – including Hindenburg, Kingdon Capital Management and a Mauritius-based trading fund set up by Kotak Mahindra Bank – violated certain rules under the Prevention of Fraudulent and Unfair Trade Practices regulation. It was dismissed in a statement by Hindenburg as “nonsense”.
Kingdon did not respond to an emailed request for comment on Tuesday by the Reuters news agency. Hindenburg’s statement did not mention its relationship with Kingdon and did not respond to an email requesting comment.
“SEBI has neglected its responsibility, seemingly doing more to protect those perpetrating fraud than to protect the investors being victimized by it,” Hindenburg said in its statement on the notice, which two sources at SEBI with direct knowledge of the matter confirmed to Reuters was authentic.
