Hindenburg Research Responds to Sebi's Notice Over Adani Short Bet

US-based short-seller Hindenburg Research, known for its report on Gautam Adani-led Adani Group last year, revealed that India's market regulator Sebi had sent it a letter outlining suspected violations over its short bet against Adani Group.

Hindenburg stated that Sebi seems more interested in pursuing those who expose such practices, while its investigation into the conglomerate has hit a wall.

The Adani Group has consistently refuted Hindenburg's accusations, which led to a temporary loss of over $150 billion in market value for its publicly traded firms.

Hindenburg also revealed that Kotak Mahindra Bank created and oversaw an offshore fund structure used by its "investor partner" to bet against the conglomerate.

Characterizing Sebi's "show cause" notice as attempted intimidation, Hindenburg wrote that the regulator made the "nebulous allegation" that Hindenburg's report contained misrepresentations and inaccurate statements meant to mislead readers.

Sebi, Adani Enterprises, and Kotak did not immediately respond to a request for comment. Sebi has been probing Adani and has until August 14 to complete its investigation.