SEBI Issues Show Cause Notice to Hindenburg and Mark Kingdon for Adani Enterprises Trading Violations

GG News Bureau
Mumbai, 2nd July. The Securities and Exchange Board of India (SEBI) has taken action against Hindenburg Research LLC, Nathan Anderson, and Mauritius-based foreign portfolio investor Mark Kingdon, issuing a show cause notice for alleged trading violations involving Adani Enterprises Ltd.

The notice accuses Hindenburg and Anderson of breaching SEBI Act regulations, SEBI’s Prevention of Fraudulent and Unfair Trade Practices regulations, and SEBI’s Code of Conduct for Research Analyst regulations.

Similarly, FPI Kingdon faces allegations of violating the SEBI Act, SEBI’s Prevention of Fraudulent and Unfair Trade Practices regulations, and SEBI’s Code of Conduct for Foreign Portfolio Investors. SEBI highlighted that Hindenburg and the FPI entities had issued a misleading disclaimer suggesting their report was solely for non-Indian securities valuation, despite it concerning Indian listed entities.

The regulator further claimed that Kingdon assisted Hindenburg in indirectly participating in Adani Enterprises by collaborating on trading the company’s futures in the Indian derivatives market, sharing profits with the research firm. Hindenburg has maintained its stance since its January 2023 report, continuing to defend its actions amid the regulatory scrutiny.