The latest issue involving Kotak Mahindra Bank and Hindenburg Research stems from a response by Hindenburg to a show-cause notice from the Securities and Exchange Board of India (SEBI). Hindenburg Research has accused SEBI of omitting the name of Kotak Mahindra Bank in its notice, despite the bank's significant role in managing the offshore fund structure used by Hindenburg's investor partner to short Adani Group shares. Hindenburg claimed that SEBI used the acronym "KMIL" to mask the name "Kotak" in its communications, alleging this was done to protect the bank from scrutiny.
Kotak Mahindra International Limited (KMIL) has responded by clarifying that Hindenburg Research has never been a client or investor in their funds. They emphasized that all their investments comply with relevant laws and follow strict Know Your Customer (KYC) procedures .