L&T Finance case: Factorial says will cooperate with Sebi

The market watchdog, yesterday, barred Factorial from the Indian securities market

Facing insider trading charges by Indian capital markets regulator Sebi, Hong Kong-based hedge fund manager Factorial Capital Management today said these allegations are "without merit" and a complete probe will fully absolve it in the case.

In an interim order passed late last night, Sebi barred Factorial from the Indian securities market after finding its Cayman Islands-based fund - Factorial Master Fund - to have allegedly profited through 'short-selling' in shares of L&T Finance Holdings on the basis of unlawful access to insider information about the company.

A Factorial spokesperson in Hong Kong told PTI: "Factorial believes that the allegations outlined in an interim order from the Indian regulator (SEBI) are without merit.

"The regulator has given 21 days to Factorial to respond. Factorial will continue to fully co-operate, and is confident that a complete investigation will fully absolve it."

Factorial Capital Management Ltd is an alternatives asset manager and Factorial Master Fund is its flagship fund.

This fund focuses on pan-Asian bottom-up investing across equities, fixed income and volatility products, while hedging out macro risks (to be broadly market-neutral).

Factorial and its funds are Cayman domiciled, while the Advisor (Factorial Management Ltd) is based out of Hong Kong, and is regulated by the Hong Kong Securities and Futures Commission.

According to the fund manager, its investment advisory team has a combined experience of over 50 years in financial markets.