Adani-linked fund takes Nomura to court over $43 million loss
Oyster Bay Fund Ltd., which had big bets on Adani stocks using Nomura's financial products, is suing the bank in London, claiming it lost $43 million after Nomura sold off pledged shares.
This comes after a Hindenburg Research report that accused Elara Capital (Oyster Bay's parent) of heavy exposure to Adani companies and triggered a huge drop in Adani's market value.
What's behind the fight?
Oyster Bay says Nomura broke their repayment deal by selling the shares too soon.
In response, Nomura points to warnings from its Asia bankers about risky leverage after a video call between Nomura officials and Elara's CEO.
Meanwhile, India's market regulator (SEBI) recently found there wasn't enough evidence to back up the fraud claims against Adani.
For context, this isn't the first time Nomura has been caught up in high-stakes stock drama—it lost $3 billion during the Archegos collapse in 2021.