SEBI Presses Ahead With Hindenburg-Adani Case

India’s markets regulator SEBI has begun hearing representations as it moves to recover alleged gains from trades it believes were made using prior knowledge of Hindenburg Research’s 2023 report on the Adani Group, according to two people familiar with the matter.

SEBI had alleged in 2024 that U.S.-based Kingdon Capital Management took short positions in Adani-linked stocks through a Mauritius-based fund before Hindenburg published its report. The report accused the Adani Group of securities-law violations, triggering a major selloff. Adani denied wrongdoing, while SEBI later dismissed Hindenburg’s stock-manipulation allegations against the group.

The regulator is also opposing insolvency proceedings in Mauritius involving the fund used for the trades, seeking to protect its assets until any recovery order is made. SEBI has argued that the trades involved non-public information and violated anti-fraud rules. The case could set an important precedent for pursuing offshore entities and recovering assets held overseas.

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