Two months before it was released, Hindenburg gave the client access to the Adani study. Sebi

Hindenburg was accused by Sebi of earning "unfair" gains through "collusion" to exploit "misleading" and "non-public" information to cause "panic selling" of Adani Group equities.According to market regulator Sebi, US short-seller Hindenburg Research made money from a contract to split profits from share price movement and sent New York-based hedge fund manager Mark Kingdon an advance copy of its devastating report about the Adani group roughly two months before it was published.In a 46-page show cause notice to Hindenburg, the Securities and Exchange Board of India (Sebi) described how the US short seller, the New York hedge fund, and a broker associated with Kotak Mahindra Bank profited from the USD 150 billion decline in the market value of the ten listed companies in the Adani group following the report's release.

Hindenburg was accused by Sebi of earning "unfair" gains through "collusion" to exploit "misleading" and "non-public" information to cause "panic selling" in the Adani Group's equities.In its response, Hindenburg, which had previously made the Sebi notice public, stated that the show cause was an attempt to "silence and intimidate those who expose corruption and fraud perpetrated by the most powerful individuals in India" and disclosed that Kotak Mahindra (International) Ltd., a Kotak Mahindra Bank Ltd. subsidiary based in Mauritius, owned the vehicle used to bet against Adani Enterprises Ltd., the company's flagship company.The KMIL fund made investments in Adani Enterprises Ltd. on behalf of Kingdon's Kingdon Capital Management, a customer.Excerpts from time-stamped conversations between KMIL traders and a hedge fund employee about selling future futures in AEL are included in the Sebi notice. Kingdon "never disclosed that they had any relationship with Hindenburg nor that they were acting on the basis of any price-sensitive information," according to Kotak Mahindra Bank.