New Delhi: The US short-seller Hindenburg Research shared an advance copy of its damaging report against the Adani Group with New York-based hedge fund manager Mark Kingdon about two months before its publication. According to market regulator SEBI, this pre-release allowed them to profit from a dal to share the spoils from the resultant share price movements.
The SEBI Investigation
Hindenburg Research, which targeted the Adani Group, shared its report with a client two months before its official release. SEBI’s 46-page notice details how Kingdon Capital, led by New York hedge fund manager Mark Kingdon, and a broker linked to Kotak Mahindra Bank profited substantially from Adani’s stock drop in 2023. They planned to exploit the situation by investing $1500 billion, with the report leaked in advance. SEBI accused Hindenburg of making “unfair” profits from “collusion” by using “non-public” and “misleading” information to induce “panic selling” in Adani Group stocks.
Hindenburg’s Response
Hindenburg, which made the SEBI notice public, described the show-cause notice as an attempt to “silence and intimidate those who expose corruption and fraud perpetrated by the most powerful individuals in India.” The firm also revealed that Kotak Mahindra (International) Ltd (KMIL), a Mauritius-based subsidiary of Kotak Mahindra Bank Ltd, was the vehicle used to bet against Adani’s flagship firm, Adani Enterprises Ltd.
Kotak Mahindra’s Statement
Kotak Mahindra Bank stated that Kingdon “never disclosed that they had any relationship with Hindenburg nor that they were acting on the basis of any price-sensitive information.” SEBI, which had informed a Supreme Court-appointed panel last year about its investigation into 13 opaque offshore entities holding between 14% and 20% across five publicly traded Adani Group stocks, has issued notices not only to Hindenburg but also to KMIL, Kingdon, and Hindenburg founder Nathan Anderson.
Who is Mark Kingdon?
Mark Kingdon, founder and owner of Kingdon Capital, is a significant figure in the investment community. His connections add complexity to this story. His wife, Anna Chang, a Chinese American, is a senior partner at Sino Century and founder of All China, a New York-based news platform. Chang is seen as a lobbyist for Chinese interests in the USA. Speculations suggest the attack on Adani stemmed from the Adani Group outbidding Chinese firms in international projects like the Haifa Port deal in Israel.
The Role of Kotak Mahindra
On Kingdon Capital’s recommendation, Kotak Mahindra Bank created a special fund to invest in Adani’s companies. However, Kotak Mahindra claims they were unaware of the conspiracy, which seems implausible given the scale of the scandal. Legal action is expected against those who manipulated the stock exchange for illegal profit, and there is also a request for government assistance to help Adani recover.
he Chinese Connection
Investigations must determine whether other companies or individuals involved have received benefits from China. The government must act against those harming India by spreading rumors and engaging in conspiracies. This issue concerns not just Adani but also the country’s security and economic stability.
The SEBI report has uncovered the conspiracy against the Adani Group, showing how Hindenburg and Kingdon Capital orchestrated a scheme to profit from short-selling Adani’s stock. The involvement of Chinese interests and Kotak Mahindra Bank adds further complexity. It is crucial for the government to take strict action against those involved to prevent future conspiracies from harming the country’s interests.
Mark Kingdon, his connections, and the role of journalists and politicians in this scandal must be thoroughly investigated. The government’s responsibility is to protect the nation’s interests and hold accountable those engaging in such detrimental activities.