Kotak Mahindra Bank shares back in green after clarification in Adani-Hindenburg matter

Kotak Mahindra Bank's shares rebounded today after the bank clarified its stance on the Adani-Hindenburg issue. The bank affirmed that Hindenburg Research was neither a client of Kotak Mahindra International Limited (KMIL) nor an investor in K- India Opportunities Fund Ltd.

This clarification came in response to SEBI's show cause notice regarding allegations of short selling Adani Group stocks following Hindenburg's negative report in January 2023.

In its statement, Kotak Mahindra Bank, founded by Uday Kotak, stated that K- India Opportunities Fund Ltd, managed by KMIL as a SEBI registered foreign portfolio investor, operated independently.

The bank emphasized that transactions under scrutiny were executed based on advice from investor Kingdon, acting independently and without disclosing any association with Hindenburg or using non-public information.

SEBI issued a show cause notice on June 26, 2024, targeting Hindenburg, Kingdon, and related entities, received by KMIL on July 2, 2024. Kotak Mahindra Bank denied any knowledge or collusion regarding Hindenburg's report, asserting that all actions were conducted within regulatory compliance.

Following the clarification, Kotak Mahindra Bank's shares rose by over 1% in early trading today, recovering from a decline in the previous session.

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