July 1 (Reuters) - U.S-based short-seller Hindenburg

Research said on Monday India's securities regulator had sent it

a letter outlining suspected violations over its short bet

against Adani Group last year and revealed it may "barely come

out above breakeven" on its trade.

Hindenburg also said Kotak Bank, an Indian firm, created and

oversaw an offshore fund structure that was used by its

"investor partner" to bet against the conglomerate, providing

new details of trades that have puzzled investors.

The short-seller said it made $4.1 million in gross revenue

through "gains related to Adani shorts from that investor

relationship" and just $31,000 through its short position of

Adani's U.S. bonds. It did not name the investor.

Characterizing the Securities and Exchange Board of India's

(SEBI) "show cause" notice as attempted intimidation, Hindenburg

wrote that the regulator had made the "nebulous allegation" that

Hindenburg's report contained misrepresentations and inaccurate

statements meant to mislead readers.

"In our view, SEBI has neglected its responsibility,

seemingly doing more to protect those perpetrating fraud than to

protect the investors being victimized by it," Hindenburg said.

SEBI, Adani Enterprises and Kotak did not immediately

respond to a request for comment outside working hours.

SEBI has also been probing Adani, but India's top court has

given it till August 14 to complete its investigation.

The disclosure of the SEBI notice adds a new twist in the

saga unleashed last year when Hindenburg, founded by Nathan

Anderson, alleged improper business dealings by Adani.

The group, which refuted the allegations, suffered a loss of

as much as $150 billion in combined market value after the

report, but has since rebounded.

Hindenburg's response also sheds some new light on the

mechanics of its trade, the details of which had intrigued other

investors because Indian securities rules make it hard for

foreigners bet against companies there.

"It was a tiny position," it said. "But, to date, our

research on Adani is by far the work we are most proud of."