SEBI slaps notice to Hindenburg on Adani case, Kotak Bank also named

• Hindenburg Research received a show cause notice from SEBI in the Adani Group case
• Kotak Bank has also been mentioned in Hindenburg's statement
• The short-seller's report on Adani Group had caused chaos in the Indian share market

Hindenburg Research, the US-based short-seller, whose article was widely in the news in India, wrote in a note that it has received a show cause notice from India's market regulator Securities and Exchange Board (SEBI) in the Adani Group case.

It said the notice outlines suspected violations by the short-seller of Indian regulations. The notice also highlights Hindenburg's relationship with an investor that had already shorted Adani Group shares.

“Kotak Bank created and oversaw the offshore fund structure used by our investor partner to bet against Adani,” said Hindenburg. According to Hindenburg Research, the notice said that its report contained "certain misrepresentations or inaccurate statements."

For the unserved, in February last year, Hindenburg Research released a report on the Adani Group, projecting downsides of up to 80 percent in some of the group's listed entities. The report triggered a sharp sell-off in these stocks.

Most of the companies under Adani Group, mainly the flagship Adani Enterprises and Adani Ports have recovered all the losses they made as a result of that report.