SEBI orders gain recovery from Adani short sellers
The Securities and Exchange Board of India is hearing representations to recover $22.25 million in profits gained by entities linked to Kingdon Capital following a short sell on Adani Group stocks.
India's market regulator, the Securities and Exchange Board of India (SEBI), is actively reviewing representations regarding funds that allegedly profited from prior knowledge of a report on the Adani Group. Investigations show Kingdon Capital Management established short positions in Adani-related shares through a fund connected to Kotak International before U.S. research firm Hindenburg Research published its 2023 analysis. Those short positions resulted in profits totaling $22.25 million for six identified entities according to SEBI's findings from earlier this year. The regulator has noted that while the Adani Group denies any wrongdoing and previously dismissed specific allegations as nonsense, these entities benefited from a profit-sharing arrangement with Hindenburg and Kotak. SEBI is seeking to recover these gains from trades suspected of benefiting from prior knowledge. This case represents a rare attempt to pursue offshore entities and recover assets abroad. The regulator did not respond to requests for comment.
