Hindenburg Report Leaks: Inside the Adani Short-Selling Scandal
US short-seller Hindenburg Research shared an advance copy of its critical report on Adani Group with NY-based hedge fund manager Mark Kingdon months before its release. SEBI's investigation reveals how Hindenburg, Kingdon, and a Kotak Mahindra broker profited from Adani Group's stock crash, raising concerns over 'unfair' profits from 'non-public' information.
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US short-seller Hindenburg Research provided an advance copy of its damning report on the Adani Group to New York hedge fund manager Mark Kingdon months before publishing, as revealed by Indian market regulator SEBI.
The Securities and Exchange Board of India (SEBI), in a detailed 46-page show-cause notice to Hindenburg, explained how the US short-seller, the New York hedge fund, and a broker tied to Kotak Mahindra Bank gained from the market value drop of Adani Group's ten listed firms by over USD 150 billion after the report's release.
SEBI accused Hindenburg of making 'unfair' profits through 'collusion' and using 'non-public' and 'misleading' information to induce 'panic selling' of Adani Group stocks. Hindenburg refuted these claims, calling it an intimidation tactic to silence those exposing corruption and fraud by powerful individuals in India.
(With inputs from agencies.)
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