Adani-Hindenburg Case: SEBI Issues Show Cause Notice Accusing Mark Kingdom Of Short-Selling Via KIOF

Adani-Hindenburg Case: Market regulator SEBI has sent a show cause notice to the American short-shutter firm Hindenburg Research, which the firm rejected and termed as “nonsense.” SEBI accused the company of colluding with a US asset manager to place a short bet against Adani Group last year using non-public information. The show-cause notice also accuses Mark Kingdom, who runs the Kingdom Offshore Master Fund. Mark Kingdon set up Kotak India Opportunity Fund (KIOF), and along with KIOF, Kingdom set up its position for short-selling in the Adani group. 

Who is Mark Kingdom?

As per SEBI, Hindenburg Research had already shared the report of Adani Group with Mark Kingdon made the ultimate beneficial ownership (UBO) of this case. SEBI also said that 25% of the profit was shared with Hindenburg in the case of short selling. Now, talking about Kotak Mahindra Bank’s connection in this case, Kotak’s KIOF class F fund had three big feeders, including Kingdon Associates, which had 66% share and Kingdon Offshore Limited had 28% and Kingdon had 6% share in the family partnership and Mark Kingdon had full control over investment strategies and execution.