Kotak Group Fund on Hindenburg claims: 'Wasn't aware that Hindenburg was partner of its investors'

Kotak Mahindra Bank connected Tuesday clarified that Hindenburg Research was ne'er a lawsuit of Kotak group’s K- India Opportunities Fund Ltd. (KIOF) and Kotak Mahindra International Limited (KMIL) and that the money was ne'er alert of it being a spouse of immoderate of its investors.

The clarification comes aft the US short-seller Hindenburg had earlier said that the Kotak Mahindra Bank and brokerage firms founded by Uday Kotak created and oversaw the offshore money operation utilized by the capitalist spouse of Hindenburg to stake against Adani radical stocks.

“Kotak Mahindra International Limited (KMIL) and KIOF unequivocally authorities that Hindenburg has ne'er been a lawsuit of the steadfast nor has it ever been an capitalist successful the Fund. The Fund was ne'er alert that Hindenburg was a spouse of immoderate of its investors,” Kotak Mahindra Bank spokesperson said connected July 2.

KMIL has besides received a confirmation and declaration from the Fund’s capitalist that its investments were made arsenic a main and not connected behalf of immoderate different person, the radical connection added.

K- India Opportunities Fund Ltd. (KIOF) is simply a SEBI registered Foreign Portfolio Investor and is regulated by the Financial Services Commission of Mauritius. The Fund was established successful 2013 to alteration overseas clients to put successful India. 

“The Fund follows owed KYC procedures portion onboarding clients and each its investments are made successful accordance with each applicable laws. We person cooperated with regulators successful narration to our operations and proceed to bash so,” the connection said.

Hindenburg had questioned connected superior marketplace regulator Securities & Exchange Board of India’s (SEBI) nonaccomplishment to instrumentality Kotak Bank’s sanction successful its show-cause announcement issued to the short-seller.

“While SEBI seemingly tied itself successful knots to assertion jurisdiction implicit us, its announcement conspicuously failed to sanction the enactment that has an existent necktie to India: Kotak Bank, 1 of India’s largest banks and brokerage firms founded by Uday Kotak, which created and oversaw the offshore money operation utilized by our capitalist spouse to stake against Adani. Instead it simply named the K-India Opportunities money and masked the “Kotak” sanction with the acronym “KMIL”, Hindenburg said.

(To beryllium updated)

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