Jethmalani's Three Demands In Hindenburg Case: Investigate KMIL, Chinese Connections, 'Indian Actors'

Rajya Sabha's Member of Parliament and senior advocate Mahesh Jethmalani on Thursday, in a call for transparency and accountability, has raised three critical demands that warrant thorough investigation in the Adani-Hindenburg case.

The markets regulator has alleged that foreign investor Kingdon Capital and its entities aided Hindenburg to indirectly participate in Adani Enterprises Ltd. by collaborating to trade in Adani Enterprise Futures and shared profits.

An investigation by Securities and Exchange Board of India found that Hindenburg colluded with Mark Kingdon and his entities in a scheme devised to use advance knowledge of non-public information to build short positions.

Hindenburg Research LLC, foreign investor Mark Kingdon and his related entities made profit of around $31.4 million by short-selling futures of Adani Enterprises, a show cause notice sent by SEBI to the short seller said.

Jethmalani shared his views on his X profile, with a tweet that said, "Here’s a huge smoking gun in the sordid episode of the short sale of #Adani shares by #Hindenburg..."

Jethmalani raised three demands.

He asked who introduced the Kingdons to KMIL and the extent of due diligence conducted by KMIL regarding the Kingdons, as well as whether KMIL participated in the short-selling.

He seeks to uncover whether Indian actors—including politicians, businessmen, and financial intermediaries—who aided Hindenburg in preparing and publishing its report on the Adani Group after the short sale, were aware of Hindenburg's short-selling motives and if they financially benefited from it.

Lastly, Jethmalani demands clarity on whether KMIL and the involved Indian actors knew about any Chinese connections behind Hindenburg.