Hindenburg commented on Kotak Mahindra Bank following a SEBI show cause notice concerning its dealings with the Adani Group.

Hindenburg Research, a US-based short seller known for its accusations against the Adani Group, received a show cause notice from SEBI on June 27, alleging violations of Indian regulations related to its activities in Adani's stocks. Hindenburg responded by dismissing the notice as baseless, asserting it was an attempt to silence critics uncovering corruption within influential circles in India.

According to Hindenburg, SEBI's investigation into their research on Adani, spanning 1.5 years, found no factual inaccuracies. Instead, SEBI objected to terms like 'scandal' used to describe previous fraud charges against Adani and references to alleged corruption within SEBI itself. Hindenburg claimed their short position on Adani, aimed at profiting from a stock price drop, involved minimal financial gain and considerable personal risk.

Highlighting their report from January 2023, Hindenburg alleged evidence of an offshore network controlled by Gautam Adani's brother and associates, facilitating large financial movements without transparency. Criticizing SEBI further, Hindenburg argued against claims of operating indirectly in Indian securities, citing their transparent disclosure of short positions.

Regarding their financial gains, Hindenburg disclosed earning $4.1 million through their investor partnership against Adani's stocks and minimal returns from US bond shorts, underscoring their limited profitability despite extensive efforts. They also criticized SEBI's omission of details regarding their ties with Kotak Bank, suggesting a pattern of protecting influential figures from scrutiny.

In essence, Hindenburg portrayed SEBI's actions as attempts to hinder legitimate scrutiny of corporate practices, alleging a broader agenda to shield powerful entities from accountability.