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US-based short-seller Hindenburg Research revealed that SEBI slapped a notice accusing them of violating of Indian regulations. For the first time, Hindenburg has named Kotak Bank in its note, with the stock dipping to lowest levels since June at one point in early trade.Hindenburg said that the June 27, 2024 notice from the Indian markets regulator was 'nonsense'. "It was concocted to serve a pre-ordained purpose: an attempt to silence and intimidate those who expose corruption and fraud perpetrated by the most powerful individuals in India," it said on Monday night.It went on to flag SEBI's failure to name Kotak Mahindra Bank's role in the dealings."While SEBI seemingly tied itself in knots to claim jurisdiction over us, its notice conspicuously failed to name the party that has an actual tie to India: Kotak Bank, one of India’s largest banks and brokerage firms founded by Uday Kotak, which created and oversaw the offshore fund structure used by our investor partner to bet against Adani. Instead it simply named the K-India Opportunities fund and masked the 'Kotak' name with the acronym KMIL," Hindenburg Research wrote.KMIL is Kotak Mahindra Investment Limited.The founder of Kotak Mahindra Bank, Uday Kotak, led SEBI's 2017 Committee on Corporate Governance. "We suspect SEBI’s lack of mention of Kotak or any other Kotak board member may be meant to protect yet another powerful Indian businessman from the prospect of scrutiny, a role SEBI seems to embrace," the short-seller wrote.Hindenburg's allegations against AdaniThe New York-based firm said that it did not work with dozens of firms to short Adani, neither did it make hundreds of millions of dollars off of it. "We had one investor partner, and net of costs we may barely come out above breakeven on our Adani short. Our work on Adani was never justifiable from a financial or personal safety perspective, but it is by far the work we are most proud of," it said"After 1.5 years Of investigation, SEBI identified zero factual inaccuracies with our Adani research. Instead, the regulator took issue with things like our use of the word 'scandal' when describing multiple prior instances of Adani promoters being charged with fraud by Indian regulators, and our quoting of an individual that alleged SEBI is corrupt and works 'hand in glove' with conglomerates like Adani to help it skirt regulations," it said."To this day, Adani has still failed to address the allegations in our report, instead providing a response that ignored every key issue we raised and has offered blanket denials of subsequent media allegations," it said, adding that its January 2023 report had "provided evidence of a vast network of offshore shell entities controlled by (group chairman) Gautam Adani's brother, Vinod Adani, and close associates.""We detailed how billions were surreptitiously moved through these entities, into and out of Adani public and private entities, often without related-party disclosures," it said.

After US-based activist investor Hindenburg Research said that Kotak Mahindra Bank created and oversaw an offshore fund structure used to bet against Adani stocks, shares of the private sector lender fell up to 2% to day's low at Rs 1,768 on BSE.A show cause notice, ostensibly issued by Sebi, released by Hindenburg in the public domain, also has the K-India Opportunities Fund as one of the six noticees. K-India Opportunities Fund is run by Kotak.Also Read: Hindenburg claims it hardly made money by shorting Adani stocks & bonds"While SEBI seemingly tied itself in knots to claim jurisdiction over us, its notice conspicuously failed to name the party that has an actual tie to India: Kotak Bank, one of India’s largest banks and brokerage firms founded by Uday Kotak, which created and oversaw the offshore fund structure used by our investor partner to bet against Adani," Hindenburg said while responding to Sebi's notice via a blog post.The investment firm also trained guns on the bank's founder Uday Kotak who personally led Sebi's 2017 Committee on Corporate Governance.Also Read: Hindenburg faces Sebi scrutiny, Kotak Bank dragged in Adani saga"We suspect Sebi's lack of mention of Kotak or any other Kotak board member may be meant to protect yet another powerful Indian businessman from the prospect of scrutiny, a role Sebi seems to embrace," it said.The revelation brings additional pressure on Kotak Bank shares, which have moved up just 4% in the last 3 years and underperformed Sensex, Nifty, and most peers by a yawning margin.Hindenburg has not named the investor who allegedly worked with Kotak."Prior media have cited sources close to SEBI and the ED who implied that we had 12 or even 16 investor partners in our Adani work...We only had one investor relationship in our Adani thesis, as is customary for our approach and as we have discussed in multiple public interviews," the firm said, adding that it may come barely breakeven by shorting Adani shorts due to the high cost of conducting a two-year global investigation.

The shares of Divine Power Energy debuted on the NSE SME platform on Tuesday with a premium of 287.5%. The stock listed at Rs 155 as against an offer price of Rs 77.Ahead of the listing, the company's shares traded with a premium of Rs 60 in the unlisted market.The IPO, which was completely a fresh equity sale of 56.9 lakh shares, received massive response from investors with an overall subscription of over 300 times at close.Net proceeds from the public offer are proposed to be used for working capital requirements of the company and other general corporate purposes.Divine Power Energy is a manufacturer of Bare Copper/ Aluminium Wire, Bare Copper/ Aluminium Strip, Winding Copper/ Aluminium Wire, Winding Copper / Aluminium Strip.Also Read: Shark tank fame Namita Thapar to rake in Rs 127 crore through Emcure Pharma IPO Winding wires are manufactured by annealing and insulating wires / strips and covering them with paper, cotton, fiberglass etc.In the current calendar year, the company started manufacturing wires covered with fiberglass which are used in manufacturing electromagnetic coils, like the one used in lifting magnets which are used to lift heavy objects like containers, machinery etc.The company has supplied wires covered with fiberglass to markets like Punjab, Bengaluru, Ahmedabad. In the recent past the company has also started trading in super enamelled wires and strips in an effort to cater customer demand and remain competitive.The company mainly sells winding wires to the power distribution companies and transformer manufacturers. Transformers play a critical role in power distribution by regulating the voltage from generation source to the consumer end.One of the critical components of a transformer is its coil which plays the role of converting electric energy to magnetic energy and then to electric energy, and changes the voltage and current at the same time. The coil is made from winding the wires in a given ratio as per the capacity and ability of the transformer. The company manufactures winding wires by insulating bare conductors (wires of copper or aluminium) by paper, cotton, super enamel, fiberglass etc. which are used to make coils of the transformers.

US-based short seller Hindenburg Research today admitted making $4.1 million revenue through gains made by shorting of Adani securities by its client but said it will hardly break even considering the costs of producing the research."We have made ~$4.1 million in gross revenue through gains related to Adani shorts from that investor relationship," Hindenburg said in a blog post while responding to a show cause notice issued by markets regulator Sebi.It also made $31,000 by shorting Adani's US bonds, which Hindenburg said was a tiny position."Net of legal and research expenses (including time, salaries/compensation, and costs for a 2-year global investigation) we may come out ahead of break even on our Adani short," Hindenburg said.Denying reports that it had 12-16 investor partners which made millions of dollars, the short seller said, "The reality, as detailed in the show cause notice, is less dramatic. We only had one investor relationship in our Adani thesis, as is customary for our approach and as we have discussed in multiple public interviews."Hindenburg said its work exposing the Adani Group was not financially justifiable and even less justifiable from a personal risk and safety perspective."But, to date, our research on Adani is by far the work we are most proud of," it said, alleging that Sebi has neglected its responsibility, seemingly doing more to protect those perpetrating fraud than to protect the investors being victimized by it."The incentives are clear: The gains from fraudulent activities outweigh the small risks of a potential 'slap on the wrist’ fine from regulators. And based on the hundreds of tips and leads we received following the Adani report, Adani is by no means the only lurking and ongoing issue Sebi has failed to address," Hindenburg said.