SEBI Seeks $22 Million in Gains from Adani Short Trades

The Securities and Exchange Board of India has initiated hearings to recover $22.25 million in profits from trades suspected of utilizing non-public information before the 2023 Hindenburg Research report on the Adani Group. The regulator alleges that Kingdon Capital Management used the K India Opportunities Fund Class F, a Mauritius-based fund linked to Kotak International, to build short positions across six entities.

To secure these assets, the regulator has opposed court-supervised insolvency proceedings in Mauritius. It has requested that Quantuma, the court-appointed receiver, prevent the transfer or distribution of the fund's assets. This enforcement action is based on the regulator's jurisdiction over trades that occurred within India.

Hindenburg Research previously dismissed the assertions made by the regulator as "nonsense." The Adani Group, the conglomerate targeted by the original 2023 report, has denied all wrongdoing.