India, Sep 05 : India’s Securities and Exchange Board has stepped up enforcement efforts in the long-running Adani-Hindenburg case, including attempts to secure assets held overseas, according to people familiar with the matter.
The regulator is pursuing recovery linked to trading activity involving Kingdon Capital Management and a Mauritius-based fund connected to Kotak Mahindra Bank. SEBI has alleged that the fund generated about $22.25 million through short positions in Adani Group companies before the publication of Hindenburg Research’s 2023 report.
SEBI alleges that the trades were based on non-public information and amounted to fraudulent activity. The parties involved have denied wrongdoing.
The regulatory action follows one of the most closely watched episodes in India’s capital markets. Hindenburg’s report accused the Adani Group of stock-market manipulation and other securities violations, allegations the conglomerate rejected.
SEBI has since dismissed Hindenburg’s allegations of stock manipulation against the Adani Group but continues to pursue matters involving other entities and trading activity associated with the episode.
The regulator is also challenging insolvency proceedings in Mauritius in an effort to prevent assets connected to the Kotak-linked fund from being distributed before the Indian proceedings are resolved.
A Mauritius court has appointed a receiver to oversee the fund, adding another layer to the cross-border dispute.
The case highlights the increasing challenges faced by regulators when alleged market misconduct involves offshore structures, international investors and assets held outside the jurisdiction of the regulator investigating the matter.
SEBI has begun personal hearings in the matter, although proceedings have faced delays because some parties and assets are located overseas.
The outcome could have broader implications for India’s ability to pursue suspected securities violations involving foreign funds and offshore financial structures.