Kotak Mahindra Bank Shares Fall 2% Amid SEBI Criticism in Adani ProbeKotak Mahindra Bank Shares Fall 2% Amid SEBI Criticism in Adani Probe

Kotak Mahindra Bank’s shares fell by 2% on Tuesday after a response to a SEBI notice criticized the regulator for not naming the bank in its short-selling investigation involving Adani group shares.

It was disclosed that firms linked to Uday Kotak had set up offshore funds used for betting against Adani shares, but SEBI only referred to these as “K-India Opportunities Fund” and “KMIL” (Kotak Mahindra Investment). As a result, Kotak Mahindra Bank’s shares dropped to Rs 1,768.25. 

The response also pointed out that Uday Kotak led SEBI’s 2017 corporate governance committee, implying possible protection of influential individuals. The responding party plans to seek more information on the investigation process, including details on communications between SEBI and Adani.