Chronology of events in the Hindenburg-Adani case


·        In March 2022, K India Opportunities Fund Class F was registered with SEBI as an FPI. It is a sub-fund of K India Opportunities Fund Ltd floated by Kotak group in 2013 to enable foreign clients to invest in India

·        In November 2022, short-seller Hindenburg Research shared a draft of its Hindenburg report on the Adani group exclusively with its client Kingdon Capital Management

·        Kingdon Capital is 99 per cent owned by Mark Kingdon, who was also the ultimate beneficiary owner of M. Kingdon Offshore Master Fund

·        In December 2022, the Master Fund started the process of subscribing to 100 per cent participating redeemable shares of K India Opportunities Fund Class F. The Master Fund, Mark Kingdon and his family members had 58.8 per cent investment in KIOF Class F

·        In December, KIOF Class opened a trading account in the cash segment of the exchanges

·        On January 5, a subscription agreement was signed between the Master Fund and KIOF. On the same day, an investment advisory agreement was signed between Kingdon Capital and Kotak Mahindra International, a subsidiary of Kotak Mahindra Bank

·        On January 5, KIOF entered into a subscription agreement with the Master fund, and on the same day, an investment advisor agreement was signed between Kingdon Capital and Kotak Mahindra International, a subsidiary of Kotak Mahindra Bank

·        On January 9, the Master Fund transferred $40 million to KIOF, which was remitted to the trading account of KIOF Class F in India, of which $15 million was converted to Indian rupees and transferred to the margin account for trading

·        On January 10, KIOF Class F started building short positions in the futures of Adani Enterprises

·        On January 13, another $3 million was transferred by the Master Fund to KIOF

·        By January 20, KIOF had built up short positions of 8.5 lakh shares in the futures of Adani Enterprises

·        On January 25, the Hindenburg Report was released to the public

·        From February 1 to 22, KIOF Class F squared off its short positions and made a total profit of $22.25 million.

·        Between January 24 and February 22, 2023, shares of Adani Enterprises fell 59 per cent



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