The Securities and Exchange Board of India (Sebi) has started hearing representations as it seeks to recover gains from trades it suspects benefitted from prior knowledge of Hindenburg Research’s scathing report about Adani Group, two people with knowledge of the matter said. The markets regulator in 2024 said US-based Kingdon Capital Management built short positions in Adani-related stocks through a Mauritius-based fund linked to Kotak International before Hindenburg published its report. Short seller Hindenburg in its 2023 report said Adani Group had violated securities law, triggering a selloff of related shares and a consequent drop in their prices, and wiping out $150 billion in group value. Adani Group denied wrongdoing. Sebi dismissed allegations of stock manipulation against the group. In 2024, Sebi detailed a profit-sharing agreement between Hindenburg and Kingdon and said six entities gained $22.25 million from short-selling trades. Sebi, Hindenburg, Kingdon and Kotak did not respond to emails seeking comment.
First Published: Sep 04 2026 | 11:31 PM IST
