Mumbai: New York-based Hindenburg Research announced that it had received a show cause notice from the Securities and Exchange Board of India (SEBI) for short selling of Adani Enterprises Ltd (AEL) stock immediately before and after the release of its report last year accusing Adani of stock market fraud.
SEBI’s notice stated that Hindenburg appeared to have colluded with certain entities to use advance knowledge of non-public information to build short positions in AEL shares and book profits.
The notice named Hindenburg Research, its founder Nathan Anderson, partner-investor Mark Kingdon, and three entities owned or controlled by Kingdon: Kingdon Capital Management LLC, M Kingdon Offshore Master Fund LP, and K India Opportunities Fund (KIOF) – Class F.
Hindenburg rejected SEBI’s notice as “nonsense”, and an attempt to silence and intimidate those who expose corruption and malpractices. SEBI is yet to issue a statement in response, and has not responded to requests seeking a reaction.
In 2023, Hindenburg Research released a 106-page report accusing the Adani Group, led by Gautam Adani, of “brazen stock manipulation and accounting fraud scheme over the course of decades”. Adani denied all allegations, and accused Hindenburg of leading a “calculated attack on India".
