SEBI Accuses Adani Nephew of Insider Trading; Seeks Settlement

Alleged Violation Linked to 2021 Acquisition of SB Energy; Settlement Sought Without Admission of Guilt

India’s markets regulator, the Securities and Exchange Board of India (SEBI), has accused Pranav Adani—nephew of Adani Group founder Gautam Adani and director at several group companies—of violating insider trading regulations. According to a confidential regulatory notice reviewed by Reuters, SEBI alleged that Pranav Adani unlawfully shared unpublished price-sensitive information (UPSI) concerning Adani Green Energy’s $3.5 billion acquisition of SoftBank-backed SB Energy Holdings in 2021. The information was reportedly communicated to his brother-in-law Kunal Shah ahead of the public announcement, leading to questionable trades in Adani Green shares.

Highlights:

• SEBI accused Pranav Adani of sharing UPSI linked to a major 2021 acquisition.

• Allegation centers on Adani Green’s $3.5 billion SB Energy deal, the largest in India’s renewable sector.

• Trades by Shah brothers allegedly netted Rs 90 lakh in gains before deal disclosure.

• Pranav Adani seeks settlement without admitting or denying charges.

Pranav Adani Moves to Settle Without Admitting Guilt

SEBI Examines Call Records and Trading Patterns; Final Decision Pending

In an official e-mailed response to Reuters, Pranav Adani denied any violation of securities law but expressed intent to resolve the matter through SEBI’s settlement mechanism. The statement clarified his motivation was to “put an end to the matter” and that he has not breached any provisions of Indian securities law. A person familiar with the matter said that settlement discussions are currently underway but remain confidential due to ongoing procedural reviews. According to SEBI’s investigative documentation, the regulator examined detailed call records and trading activity around the time of the SB Energy acquisition to establish patterns indicating the sharing of UPSI.

Highlights:

• Pranav Adani denies wrongdoing but opts to settle “without admission or denial.”

• SEBI reviewed telecom records and stock trades as part of the probe.

• Settlement talks ongoing, but final decision pending SEBI’s internal procedural review.

Shah Brothers Accused of Benefiting from Insider Trades

Rs 90 Lakh Allegedly Earned Through Trades Ahead of Deal Announcement

The SEBI notice also named Kunal Shah and his brother Nrupal Shah for allegedly trading in Adani Green shares after receiving UPSI. The two reportedly earned profits totaling Rs 90 lakh through trades executed shortly before the acquisition was made public on May 17, 2021. While SEBI extended the option of a settlement to the Shah brothers, they declined, calling the proposed terms “onerous.” In a formal statement issued through their legal representatives, both Kunal and Nrupal Shah denied any wrongdoing, asserting that the information was already available in the public domain and there was no mala fide intent behind their trades.

Highlights:

• Kunal and Nrupal Shah allegedly earned Rs 90 lakh from pre-announcement trades.

• Both brothers deny accessing any confidential or insider information.

• SEBI offered settlement, but the Shah brothers chose to contest charges.

Renewed Regulatory Scrutiny Amid Past Controversies

Adani Group Previously Faced US Allegations on Corruption and Misrepresentation

The latest SEBI case adds to a series of regulatory and legal challenges confronting the Adani Group. Last year, US authorities had indicted Gautam Adani and senior Adani Green executives over alleged bribery to win Indian power contracts and misleading statements made to American investors. The Adani Group had denied those allegations, dismissing them as “baseless.” The insider trading case involving Pranav Adani thus intensifies the spotlight on corporate governance practices within the conglomerate as it continues to face global regulatory scrutiny.

Highlights:

• Follows earlier US indictment of Gautam Adani and Adani Green officials.

• Allegations include bribery and misleading investors in American markets.

• Adani Group continues to refute all charges as regulatory pressures persist.