Senior advocate Mahesh Jethmalani has levelled a sensational charge, in which he has accused a businessman close to China for commissioning the controversial Hindenburg Research report leading to the Adani group's stock plummeting. According to a long social media post, Jethmalani alleged through his sources that one Mark Kingdon attached to Kingdon Capital Management LLC had engaged Hindenburg to prepare the Adanigroup targeted report.
Terming it the "smoking gun" in the controversy over Adani's stock sale, Jethmalani zeroed in on Anla Cheng, Kingdon's wife and a known entity with Chinese connections in the US. Jethmalani accused the couple of using Kotak Mahindra Investments Limited to create an offshore account for trading Adani shares and earning huge profits by short selling them.
The lawyer has further alleged that this maneuvering not only resulted in a massive devaluation of Adani's market capitalization but hurt several Indian retail investors. He said Kingdon and Cheng's actions were also instigated by Adani Group's success in winning bids over Chinese competitors on many international projects.
Jethmalani questions due diligence by the bank and their role in facilitating the short-selling scheme on Kotak Mahindra's involvement. He has asked what quid pro quo other Indian entities and individuals got for aiding Hindenburg's activities against Adani Group.
It is in response to such allegations that the Securities and Exchange Board of India recently examined Hindenburg Research and Kotak Mahindra for probable trading violations pertaining to Adani shares. Hindenburg denied it was a client of the K-India Opportunities Fund of Kotak Mahindra, contrary to assertions attributed to Jethmalani.
The very controversy underlines the intersection of international finance, geopolitical interests, and corporate competition, showing that in this way, very complicated dynamics might eventually affect stock markets and investor sentiment worldwide.
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