Chinese connection behind Hindenburg's attack on Adani Group, claims senior lawyer
Adani-Hindenburg Row: In a lengthy post on X, Jethmalani said that US businessman Mark Kingdon, under the guise of Kingdon Capital Management, hired Hindenburg to prepare a report on the Adani Group. This led to the creation of the Kotak India Opportunity Fund (KIOF).
Senior lawyer Mahesh Jethmalani has alleged that a trader with Chinese links had commissioned a report by short-seller Hindenburg Research, which led to a blow to the shares of Adani Group companies. Earlier this week, the Securities and Exchange Board of India (SEBI) said that foreign portfolio investor Kingdon Capital Management LLC and its entities had indirectly assisted Hindenburg in shorting shares of Adani Enterprises Ltd. An investigation by the market regulator also revealed that Kotak Mahindra and Hindenburg conspired together to take short positions in Adani shares.
In a lengthy post on X, Jethmalani stated that US businessman Mark Kingdon, operating under the name Kingdon Capital Management, hired Hindenburg to create a study on the Adani Group. Kingdon also asked Kotak's overseas investment arm, Kotak Mahindra Investments Ltd (KMIL), to set up an offshore fund and an offshore account for trading Adani shares.
This prompted the establishment of the Kotak India Opportunity Fund (KIOF). This fund allegedly acquired short positions in Adani Group shares via Mauritius before the Hindenburg report was made public, and it was funded with about $40 million by the Kingdon Master Fund.
The smoking gun that the senior lawyer referred to is that Kingdon's wife Anla Cheng, a Chinese-American, holds a major stake in the Kingdon Master Fund. She is a lobbyist for Chinese interests in the United States.
