Kotak Mahindra banks' shares concluded the day at Rs 1,763, down by nearly 2.5 per cent on NSE after its name was highlighted in the controversial Adani-Hindenburg drama.
Kotak Mahindra Bank shares falls as a new brawl starts between Hindenburg and Sebi following market regulator's show cause notice
Kotak Mahindra banks' shares concluded the day at Rs 1,763, down by nearly 2.5 per cent on NSE after its name was highlighted in the controversial Adani-Hindenburg drama.
Hindenburg has accused Kotak Bank of creating and overseeing the offshore fund structure used by its investor partner to bet against Adani. "Instead it simply named the K-India Opportunities fund and masked the 'Kotak' name with the acronym KMIL," as per Hindenburg Research.
Hindenburg Research, an US based investment research firm grabbed headlines after it released a report alleging Indian conglomerate Adani Group of operating “the largest con in corporate history.”
The firm has recently accused SEBI for not mentioning Kotak or any Kotak board member and has even called the regulator's move a cover up for a powerful Indian businessman.
On June 1, the short selling firm publicly disclosed the show cause notice by the capital market regulator. With these facts coming to light shares of Kotak Mahindra Bank have faced additional pressure. They have underperformed on market indices.
In a response to SEBI's show cause notice the research firm replied in a blog post "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."