Factorial says insider trading allegations in India "without merit"

HONG KONG, June 6 Fri Jun 6, 2014 3:34am EDT

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HONG KONG, June 6 (Reuters) - Hong Kong-based hedge fund Factorial Capital Management said insider trading allegations against the firm by India's market regulator are "without merit" and the hedge fund will fully c-operate in the investigation.

The Securities Exchange Board of India (SEBI) on Thursday accused Factorial of insider trading, saying it suspected the hedge fund had shorted L&T Finance Holdings Ltd before the announcement of a share sale in mid-March.

"Factorial believes that the allegations outlined in an interim order from the Indian regulator (SEBI) are without merit," the hedge fund firm said in a statement to Reuters.

"The regulator has given 21 days to Factorial to respond. Factorial will continue to fully co-operate, and is confident that a complete investigation will fully absolve it," it added. (Reporting by Nishant Kumar)