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India Regulator Hunts Offshore Gains From Adani Trades
4 Sep
Summary
- India's market regulator is pursuing gains from trades suspected to be insider information.
- A Mauritius fund linked to Kingdon Capital is a target in the ongoing investigation.
- The regulator seeks to recover $22.25 million in alleged profits from short-selling trades.
India's market regulator, SEBI, has commenced hearings to recover alleged gains from trades conducted before the public release of a critical report on the Adani Group. These trades are suspected to have been based on non-public information.
SEBI's investigation focuses on U.S.-based Kingdon Capital Management, which reportedly established short positions via a Mauritius-based fund associated with Kotak International. This fund, K India Opportunities Fund Class F, is alleged to have profited $22.25 million from these trades.
The regulator is pursuing enforcement action against offshore entities, asserting jurisdiction due to the trades occurring in India. SEBI has taken steps to prevent the dissipation of assets by opposing insolvency proceedings for the Kotak fund in Mauritius.
As of early July 2026, SEBI requested the receiver appointed by the Mauritius Supreme Court to safeguard fund assets, ensuring they are not distributed before recovery orders are issued. This action highlights SEBI's commitment to asset recovery abroad.
