Hindenburg Research has denied allegations by India’s securities regulator that it colluded with a US asset manager to use non-public information to set up a short bet against Adani Group last year, which if proven would breach the country’s rules.
Hindenburg posted a copy of a 46-page “show cause” notice from the Securities and Exchange Board of India (SEBI) outlining the allegations on its website on Monday, 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 that 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 Fraud 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 yesterday.
