Hindenburg Research has alleged that even though Kotak Bank created and oversaw the offshore fund structure used by an investor partner to bet against Adani stocks, Sebi masked the “Kotak” name with the acronym “KMIL” in the show cause notice issued by the market regulator to the short seller firm.
“While SEBI seemingly tied itself in knots to claim jurisdiction over us, its notice conspicuously failed to name the party that has an actual tie to India: Kotak Bank, one of India’s largest banks and brokerage firms founded by Uday Kotak, which created and oversaw the offshore fund structure used by our investor partner to bet against Adani. Instead it simply named the K-India Opportunities fund and masked the “Kotak” name with the acronym “KMIL”,” Hindenburg said in response to the Sebi show cause.
“Uday Kotak, founder of the bank, led SEBI’s 2017 Committee on Corporate Governance. We suspect SEBI’s lack of mention of Kotak or any other Kotak board member may be meant to protect yet another powerful Indian businessman from the prospect of scrutiny, a role SEBI seems to embrace,” the short seller firm alleged.