Hindenburg Receives 'Show Cause' Letter from SEBI Over Adani Report, Kotak Bank Involved

Jul 2, 2024, 03:00 AM

Hindenburg Research has received a 'show cause' letter from the Securities and Exchange Board of India (SEBI) regarding its short-selling report on Adani Enterprises. The letter follows allegations from Hindenburg that SEBI failed to address fraud claims made in the report published in January 2023. The report accused the Adani Group of regulatory violations and unfair trade practices. Hindenburg's response highlighted that Kotak Bank created and oversaw the offshore structure used for the short bet on Adani stocks, with only one other unnamed investor involved. SEBI's notice suggests potential regulatory breaches by Hindenburg.