Senior lawyer Mahesh Jethmalani has ignited controversy with claims of a “smoking gun” linking a businessman with Chinese ties to the Hindenburg Research report that rocked Adani Group’s stocks. Recently, the Securities and Exchange Board of India or SEBI implicated foreign portfolio investor Kingdon Capital Management LLC in aiding Hindenburg’s actions against Adani Enterprises Ltd.
In a detailed disclosure on X, Jethmalani pointed fingers at Mark Kingdon, alleging that Kingdon Capital Management commissioned Hindenburg to compile the critical report on the Adani Group. Kingdon reportedly collaborated with Kotak Mahindra Investments Limited or KMIL to establish offshore funds and accounts, including the Kotak India Opportunity Fund or KIOF, which allegedly took substantial short positions in Adani shares through Mauritius prior to the report’s publication, funded by the Kingdon Master Fund.
The lawyer highlighted a significant revelation, asserting that Kingdon’s wife, Anla Cheng, known for her ties to Chinese interests, was previously involved with initiatives like SupChina, which later faced scrutiny for alleged pro-China biases. Jethmalani suggested that Kingdon and Cheng’s actions were influenced by the Adani Group’s activities, which reportedly opposed Chinese interests in global ventures.
Jethmalani posed critical questions about the involvement and awareness of Indian entities and individuals, in Hindenburg’s short-selling strategy and their potential benefits. Jethmalani particularly mentioned politicians, in an apparent dig at the Opposition, which has used the Adani-Hindenburg issue to target the group and the government on numerous occasions. He highlighted concerns about the Chinese connection and raised queries regarding due diligence and participation in the short sell by KMIL.
SEBI, in response, accused Hindenburg Research LLC of misrepresentations and selective disclosures aimed at manipulating Adani stock prices. Hindenburg denied sharing its draft report with Kingdon before publication, while Kotak Mahindra International Ltd clarified that Hindenburg was never a client nor an investor in the KIOF.
The unfolding controversy has sparked broader implications about foreign involvement and market manipulation, highlighting the complexities surrounding corporate governance and international financial interactions in Bharat’s market landscape.
