Kaynes Tech Crash: Motilal Oswal Denies Rumours on Research and Fund Practices

Motilal Oswal, co-founder of the Motilal Oswal Group, issued a strong and public rebuttal on Thursday after allegations surfaced on social media questioning the firm’s research credibility and fund management practices. The allegations were linked to the sharp fall in Kaynes Technology shares earlier in the week.

Allegations Surface on X After Sharp Fall in Kaynes Tech Shares

The controversy began when X user Ashish Garg (@Ashishkafunda) posted claims regarding the sudden price decline in Kaynes Technology shares on Tuesday. According to Garg, the fall was allegedly triggered by Motilal Oswal selling 8.17 lakh shares of the company.

Garg further claimed that the sale was valued at approximately Rs 489 crore, with shares reportedly sold at Rs 6,000 each. He also highlighted what he called “irony,” pointing out that the brokerage had issued a ‘Buy’ rating on Kaynes Technology with a target price of Rs 8,200 just two weeks earlier.

These claims quickly gained traction on social media, raising speculation around the timing of the share sale and the integrity of the brokerage’s research recommendations.

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Motilal Oswal Issues Strong Rebuttal

Responding publicly, Motilal Oswal dismissed the allegations as “false, rubbish and completely unjustified.” He categorically rejected the claims made in Garg’s post and emphasised that the group follows strict internal standards.

Oswal stated that the Motilal Oswal Group maintains:

• Robust research processes

• Strict governance norms

• Independent research teams

• No personal transactions in proprietary accounts

According to Oswal, these systems are designed to ensure that research views, fund management decisions, and proprietary trading remain independent and transparent.

Brokerage Denies Any Wrongdoing or Conflict

Motilal Oswal reiterated that the allegations circulated on X are baseless. He emphasised that the firm’s research and fund management functions remain insulated from personal interests.

He also stated that there are no personal trades executed within proprietary accounts, countering the suggestion that individuals within the organisation could have benefited from the alleged sale. This point was highlighted to underline the group’s claim of clean and compliant governance.

Legal Action on the Table

Alongside denying the allegations, Oswal warned that the group would consider legal action against those spreading what he described as misleading information. While no details were disclosed, the statement suggested that the organisation is prepared to move legally if such claims continue.

This warning adds a formal layer to the rebuttal, signalling the seriousness with which the firm is addressing the rumours on social media.

Context of Rating and Target Price Mentioned in Claims

In the original allegation, Garg pointed to the fact that the brokerage had issued a ‘Buy’ rating on Kaynes Technology with a target of Rs 8,200 merely two weeks before the alleged share sale. His post implied inconsistency between the rating and the supposed market action.

Oswal refuted these implications, stating that the group’s research views remain independent and are not influenced by fund management decisions or proprietary trading, as these functions operate under separate governance structures.

Social Media Discussion Continues

The exchange highlights ongoing conversations on social media around brokerage recommendations, conflict of interest concerns, and transparency in market-related communication. The claims and rebuttal have generated substantial discussion, but Motilal Oswal has maintained a clear stance that all allegations are unfounded.

The firm’s message remains consistent: its research and fund management processes are independent, compliant, and governed by strict internal standards.

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