Kingdon Capital Management, L.L.C.

Allegations: SEBI CLAIMS THE ADVISER AND MARK KINGDON COLLUDED IN A SCHEME DEVISED TO USE ADVANCE KNOWLEDGE OF NON-PUBLIC INFORMATION REGARDING THE EXISTENCE, TIMING AND OVERALL NATURE OF A REPORT THAT HINDENBURG RESEARCH LLC PUBLISHED TO ALLEGEDLY ENABLE ADVISER CLIENTS TO BUILD A SHORT POSITION IN THE FUTURES OF ADANI ENTERPRISES LIMITED ("AEL") AND SHARE IN PROFITS RESULTING FROM LOWERING OF AEL SHARE PRICES OWING TO PUBLICATION OF THE REPORT, WHICH REPORT WAS PURPORTEDLY DESIGNED TO LOWER AEL STOCK PRICES. THIS, SEBI CLAIMS, QUALIFIES AS AN UNFAIR TRADE PRACTICE UNDER INDIAN LAW. THE SEBI NOTICE NOTES THAT THE ADVISER "TOOK CONFIRMATION FROM LEGAL COUNSEL THAT IT COULD 'ENTER INTO A RESEARCH SERVICES AGREEMENT WITH A THIRD-PARTY THAT PUBLICLY RELEASES SHORT REPORTS ON COMPANIES, PURSUANT TO WHICH [THE ADVISER] WOULD BE GIVEN A DRAFT COPY OF THE REPORT BEFORE IT IS MADE PUBLICLY AVAILABLE AND WOULD HAVE THE OPPORTUNITY TO ACCORDINGLY MAKE INVESTMENTS BEFORE THE REPORT'S PUBLIC DISSEMINATION." Status: Pending Summary: THE ADVISER RECEIVED A SHOW CAUSE NOTICE ON JUNE 27, 2024, WHICH NOTICE WAS DATED JUNE 26, 2024. REPLIES, IF ANY, ARE DUE WITHIN 21 DAYS FROM RECEIPT, ALTHOUGH THAT DEADLINE MAY BE EXTENDED.