The Securities and Exchange Board of India or SEBI has taken decisive action by issuing a show cause notice to Hindenburg Research LLC, Nathan Anderson, and Mauritius-based foreign portfolio investor (FPI) Mark Kingdon for alleged trading violations related to Adani Enterprises Ltd.
SEBI has accused Hindenburg and Anderson of breaching regulations under the SEBI Act, SEBI’s Prevention of Fraudulent and Unfair Trade Practices regulations, and SEBI’s Code of Conduct for Research Analyst regulations. The notice highlights concerns over their activities before and after the publication of the Hindenburg Report, which scrutinised Adani Enterprises.
Similarly, FPI Mark 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’s investigation highlights that Kingdon allegedly collaborated with Hindenburg, indirectly engaging in Adani Enterprises’ futures in the Indian derivatives market and sharing profits with the research firm.
Central to SEBI’s findings is the accusation that Hindenburg and associated FPI entities issued a misleading disclaimer suggesting the report pertained only to securities traded outside Bharat, despite its direct implications for listed Indian entities.
SEBI’s show cause notice marks a significant step in scrutinising market activities and ensuring compliance with regulatory frameworks aimed at maintaining fair and transparent trading practices.
