New Delhi, Sept. 4 -- India's market regulator has started hearing representations as it seeks to recover gains from trades it suspects benefited from prior knowledge of Hindenburg Research's scathing report about Adani Group, two people with knowledge of the matter said.

The Securities and Exchange Board of India (SEBI) in 2024 said U.S.-based Kingdon Capital Management built short positions in Adani-related stocks through a Mauritius-based fund linked to Kotak International before Hindenburg published its report.

Short positions refer to selling borrowed shares, buying them back when the share price drops, then pocketing the difference.

Short seller Hindenburg in its 2023 report said Adani Group had violated securities law, triggerin...