In their clarification, Kotak Bank mentioned that Kingdon didn’t tell KMIL about any connection with Hindenburg or share any sensitive price-related information.
Kotak Mahindra Bank stated on July 2 that the Securities and Exchange Board of India (SEBI) has issued a show cause notice dated June 26 to Hindenburg Research, Kingdon, associated parties, and K India Opportunities Fund Limited.
The allegations by SEBI pertain to the short selling of Adani Enterprises Ltd. stock before Hindenburg Research published a report on January 25, 2023, as disclosed in a regulatory filing by the bank. Kotak clarified that the transactions under scrutiny were conducted by the Fund on advice and for the benefit of its investor, Kingdon.
Kotak Mahindra Bank further clarified that Kingdon did not disclose any relationship with Hindenburg to Kotak Mahindra International Ltd (KMIL) or act on any insider information.