US short seller Hindenburg has never been a client or an investor of Kotak Mahindra International Limited (KMIL), the company clarified on Tuesday, following a fresh controversy in the Adani saga.
On Tuesday, Hindenburg Research’s assertion that brokerage companies founded by Uday Kotak created and monitored the offshore fund structure that its investor partner utilized to bet against Adani group shares was categorically refuted by Kotak Mahindra International Limited (KMIL) and KIOF.
“Hindenburg has never invested in the fund or been a client of the company. The Fund never knew that any of its investors had Hindenburg as a partner.
According to a Kotak Mahindra International Limited spokeswoman, “KMIL has also received a confirmation and declaration from the Fund’s investor that its investments were made as a principal and not on behalf of any other person.”
The Financial Services Commission of Mauritius oversees K-India Opportunities Fund Ltd. (KIOF), a Foreign Portfolio Investor registered with SEBI. In order to facilitate international clients’ investments in India, the fund was founded in 2013.
When onboarding clients, the Fund adheres to the necessary KYC procedures, and all of its investments are made in compliance with all relevant regulations. The spokeswoman said, “We have and will continue to cooperate with regulators regarding our business.
Kotak Mahindra Bank shares dropped more than 2% in early trading after Hindenburg Research claimed that the market regulator had neglected to identify the private lender in the case of the short selling of Adani Group shares, in response to Sebi’s show cause notice.