New Kotak Twist In Adani-Hindenburg Saga

In another twist to the much drawn-out Adani-Hindenburg saga, the US-based short-seller has revealed that the Indian market regulator SEBI has issued a show-cause notice outlining suspected violations of Indian regulations.
Hindenburg hit back fiercely, stating that the 46-page notice failed to identify any factual inaccuracies in their January 2023 report. They alleged that the regulator came to Adani Group's aid after the report's release.
But before we dive into the details of SEBI's show-cause notice and Hindenburg's fiery response, let's rewind to January 2023 when Hindenburg Research published a damning report against one of India's largest conglomerates, Adani Group, calling it, and I quote, "the largest con in corporate history."
Hindenburg accused Adani Group of market manipulation and projected up to an 80% drop in some of the group's listed entities. The group refuted the allegations but still suffered a loss of as much as $150 billion in combined market value after the report's release.
Despite the significant hit, most of the Adani Group companies, primarily the flagship Adani Enterprises and Adani Ports, have since recovered all the losses incurred due to the report.
The group also addressed multiple issues, including deleveraging the balance sheet, improving corporate governance, reducing pledged shares in the following months.
Upon receiving the show-cause notice, Hindenburg has claimed that SEBI pressured brokers behind the scenes to close short positions in Adani under the threat of expensive, perpetual investigations. This, according to Hindenburg, effectively created buying pressure and set a ‘floor’ for Adani’s stocks at a critical time.
The short-seller also questioned why SEBI failed to name Kotak Mahindra Bank in its observations.
According to Hindenburg, Kotak Mahindra Bank created and managed the offshore fund structure used by the investor partner of Hindenburg to short Adani stocks. Hindenburg alleges that SEBI’s omission of Kotak’s name might be intended to shield founder Uday Kotak, who led the 2017 Committee on Corporate Governance.
Interestingly Kotak Mahindra in response has denied any association with Hindenburg, saying that the US-based short-seller was never a client of KIOF nor has it ever been an investor in the Fund.
The short-seller further debunked certain questions revolving around its report. That the firm concocted this so-called brazzen attack on Adani group With Dozens Of Firms and made millions of dollars in the process.
The short-seller clarified that it only had one investor partner and, net of costs, they barely made any money on their Adani short positions.
According to the firm, they made $4.1 million in gross revenue through gains related to Adani shorts from that investor relationship but earned just $31,000 through their own short of Adani U.S. bonds.
For them the Adani thesis was never finanically justifiable and was even less justifiable from a personal risk and safety perspective.
Regardless, Hindenburg claims it was their best work till date, one they are the most proud of.
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[@nehulbhakta1542]

This is international saga must investigate. Ease of doing business country reputation ,financial loss and loss of competitive opportunities.

[@blueskyloo]

So basically, the short was very perfectly planned keeping all the laws in mind domestic international both, now the govt is doing face saving acts through SEBI.
Coz how does sebi have jurisdiction over hindenberg? Its registerd in Nyork
Also if kotak acted as per short selling laws, then they cant be questioned either.
So what is SEBI after???