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U.S.-based short-seller Hindenburg Research announced that India's securities regulator, SEBI, had sent a letter outlining suspected violations over its short bet against Adani Group last year. Hindenburg disclosed that it may barely come out above breakeven on its trade. In a detailed statement, Hindenburg revealed that Kotak Bank, an Indian firm, created and managed an offshore fund structure for its investor partner to bet against the Adani conglomerate. This provided new insights into the trades that had puzzled many investors. The short-seller reported making $4.1 million in gross revenue from gains related to Adani shorts and just $31,000 from its short position on Adani's U.S. bonds. Hindenburg characterized SEBI's show cause notice as an attempt at intimidation, stating that the regulator accused Hindenburg's report of containing misrepresentations and inaccuracies intended to mislead readers. SEBI has neglected its responsibility, seemingly doing more to protect those perpetrating fraud than the investors being victimized by it, Hindenburg said. SEBI has also been investigating Adani, with India's top court granting it until August 14 to complete the probe. This disclosure adds a new twist to the saga that began last year when Hindenburg, founded by Nathan Anderson, alleged improper business dealings by Adani. The group, which refuted the allegations, suffered a loss of up to $150 billion in combined market value but has since rebounded. Hindenburg's response sheds new light on the mechanics of its trade, intriguing other investors due to the complexity of shorting Indian securities. It was a tiny position, Hindenburg said. But, to date, our research on Adani is by far the work we are most proud of.