Archive · 4 Sep 2026
SEBI Begins Hearings Over Alleged Adani-Hindenburg Trading Gains
India’s markets regulator is investigating trades made before a major report about the Adani Group was published.
The regulator believes some traders may have known about the report before it became public.
They allegedly bet that Adani shares would fall by selling borrowed shares.
Hindenburg Research published the report in January 2023, and Adani Group denied its allegations.
SEBI later rejected Hindenburg’s claims that Adani shares were manipulated.
However, SEBI says six entities still made about $22.25 million from the trades.
The trades involved Kingdon Capital Management and a Mauritius-based fund linked to Kotak International.
SEBI is trying to protect the fund’s assets while it seeks to recover the alleged gains.
SEBI has begun personal hearings over alleged profits from trades made before Hindenburg Research’s January 2023 Adani Group report.
The regulator says six entities gained an estimated $22.25 million through short-selling Adani-related stocks.
SEBI alleges Kingdon Capital Management created short positions through Mauritius-based K India Opportunities Fund Class F.
The regulator argues it has jurisdiction because the trades were executed in Indian markets, despite the parties being overseas.
SEBI has opposed insolvency proceedings and sought to prevent the fund’s assets from being transferred or distributed during recovery proceedings.
- Who
- The Securities and Exchange Board of India, Kingdon Capital Management, Hindenburg Research, Kotak International, and other overseas entities are involved.
- What
- SEBI has begun personal hearings and is seeking recovery of an estimated $22.25 million in alleged short-selling gains.
- When
- The trades occurred before Hindenburg Research’s January 2023 report; hearings began more than two years after initial proceedings, and a receiver was appointed in June.
- Where
- The trades were executed in Indian markets, while the involved parties and the fund are based overseas, including in Mauritius.
- Why
- SEBI alleges the trades used non-public information and is seeking to recover the resulting gains and protect related assets.
SEBI’s Position
Responses From Involved Parties
Basis for recovery
SEBI’s Position
SEBI alleges that six entities used non-public information to profit from short-selling trades and is seeking recovery of $22.25 million.
Responses From Involved Parties
Hindenburg Research has previously denied wrongdoing and called SEBI’s assertions “nonsense”; the other parties’ substantive defenses were not reported.
Regulatory jurisdiction
SEBI’s Position
SEBI argues it can pursue the overseas parties because the trades were executed in Indian markets.
Responses From Involved Parties
The parties involved are based overseas, but the sources do not report their position on SEBI’s jurisdiction. SEBI, Hindenburg, Kingdon, and Kotak did not respond to requests for comment.
Control of fund assets
SEBI’s Position
SEBI has opposed Mauritius insolvency proceedings and asked that the fund’s assets remain protected until alleged gains and interest can be recovered.
Responses From Involved Parties
Mauritius’ Supreme Court appointed a Quantuma managing director as receiver to control and protect the fund’s assets during the insolvency process.
- Regulator
- Securities and Exchange Board of India (SEBI)
- Estimated gains
- $22.25 million
- Relevant report
- Hindenburg Research’s January 2023 report on Adani Group
- Trading strategy
- Short-selling Adani-related stocks
- Fund involved
- K India Opportunities Fund Class F, a Mauritius-based fund linked to Kotak International
- SEBI’s jurisdictional argument
- The trades were executed in Indian markets
- Asset protection
- SEBI asked that fund assets not be transferred or distributed before recovery proceedings conclude
- Receiver
- Mauritius’ Supreme Court appointed Quantuma’s managing director as receiver in June
