HONG KONG, June 6 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)