Hindenburg was never a client or investor of the firm, clarifies KMIL
KIOF is one of the recipients of Sebi's show-cause notice in the Adani short-selling matter issued on June 26, 2024
 "Hindenburg was never a client or investor of the firm, clarifies KMIL")
Kotak Mahindra International Ltd (KMIL) and K-India Opportunities Fund (KIOF) have said Hindenburg has never been a client of the firm or an investor in the fund.
“The fund was never aware that Hindenburg was a partner of any of its investors. KMIL has also received a confirmation and declaration from the fund’s investor that its investments were made as a principal and not on behalf of any other person,” a KMIL spokesperson said.
KIOF, a Mauritius-based, Sebi-registered foreign portfolio investor, was the fund structure used by US-based asset manager Kingdon Capital to build short positions in Adani Enterprises. The fund is one of the recipients of the Securities and Exchange Board of India’s (Sebi’s) showcause notice issued on June 26 in the Adani short-selling matter. “The fund was established in 2013 to enable foreign clients to invest in India.
The fund follows due KYC (know your customer) procedures while onboarding clients and all its investments are made in accordance with all applicable laws. We have cooperated with regulators in relation to our operations and continue to do so,” the spokesperson said.
“The fund was never aware that Hindenburg was a partner of any of its investors. KMIL has also received a confirmation and declaration from the fund’s investor that its investments were made as a principal and not on behalf of any other person,” a KMIL spokesperson said.
KIOF, a Mauritius-based, Sebi-registered foreign portfolio investor, was the fund structure used by US-based asset manager Kingdon Capital to build short positions in Adani Enterprises. The fund is one of the recipients of the Securities and Exchange Board of India’s (Sebi’s) showcause notice issued on June 26 in the Adani short-selling matter. “The fund was established in 2013 to enable foreign clients to invest in India.
The fund follows due KYC (know your customer) procedures while onboarding clients and all its investments are made in accordance with all applicable laws. We have cooperated with regulators in relation to our operations and continue to do so,” the spokesperson said.
(Disclaimer: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd)