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| Photo Credit: Reuters

Kotak Mahindra International Limited said on Tuesday that U.S. short-seller Hindenburg Research has never been an investor in the K-India Opportunities Fund.

Kotak was responding to allegations that Hindenburg colluded with its client Kingdon Capital Management and used a Kotak group offshore fund to short Adani group shares last year.

“The Fund was never aware that Hindenburg was a partner of any of its investors,” Kotak said in a media statement.

It added that investments were made in the fund by its investors and not on behalf of any other person.

Kotak further said that it is cooperating with India markets regulator.

Securities and Exchange Board of India (SEBI) in Mumbai. File
| Photo Credit: REUTERS

Markets regulator SEBI proposed on Wednesday ways in which offshore funds whose India licences have expired can dispose of securities they hold, according to a discussion paper issued on the regulator’s website.

A discussion paper is the first step taken by the Securities and Exchange Board of India (SEBI) before it finally changes its rules for market entities.

Until now, there has been no mechanism for offshore funds to liquidate their holdings after their licences expire.

There are 55 offshore funds whose India licences have expired and they hold securities worth 3.3 billion Indian rupees ($39.77 million), SEBI said.

In a separate paper the regulator proposed that offshore funds be required to report any material changes such as in the structure of funds, their ownership or control within 30 days.

Presently offshore funds need to report such changes within seven working days.