Adani Hindenburg Case: SEBI Steps Up Action in Adani-Hindenburg Case, Seeks Recovery of Trading Gains
NEW DELHI, September 4, 2026 — India’s markets regulator has intensified its action against parties it suspects profited from advance knowledge of Hindenburg Research’s 2023 report on the Adani Group, according to people familiar with the matter.
The Securities and Exchange Board of India (SEBI) has begun hearings as it seeks to recover gains from trades that it believes were based on non-public information about the report, which triggered a sharp selloff in Adani Group shares.
At the centre of the regulator’s case is U.S.-based investment firm Kingdon Capital Management. SEBI believes Kingdon generated about $22.25 million through short positions established ahead of the publication of Hindenburg’s report, using a Mauritius-based fund linked to Kotak.
The regulator alleges that the trades benefited from information that was not publicly available at the time and therefore breached India’s anti-fraud securities regulations.
Hindenburg Research published its report in January 2023, accusing the Adani Group of stock manipulation and improper use of offshore tax structures. The conglomerate strongly denied the allegations.
SEBI has since dismissed Hindenburg’s allegations of stock manipulation against the Adani Group but has continued pursuing regulatory action involving offshore entities and investors connected to trades made before the report was released.
The regulator is also challenging insolvency proceedings in Mauritius involving a fund connected to the disputed transactions. SEBI has sought measures to protect assets that could potentially be used to recover the alleged gains.
The case has taken on wider significance because it could test the ability of Indian regulators to pursue financial misconduct involving overseas entities and recover assets held outside the country.
The proceedings also come as SEBI continues to examine offshore investors linked to the Adani Group. In a separate development last month, the regulator rejected settlement applications from at least three Mauritius-based funds over alleged failures to disclose shareholder information.
Hindenburg Research, Kingdon Capital and Kotak did not respond to Reuters' requests for comment. Hindenburg has previously rejected SEBI's allegations, describing them as unfounded.
The latest action marks another significant chapter in the long-running regulatory fallout from the Hindenburg report and could have broader implications for how Indian authorities deal with cross-border market cases involving offshore funds and foreign-based assets.