India’s financial markets regulator, the Securities and Exchange Board of India (SEBI), has accused Pranav Adani, a key figure in the Adani Group and nephew of billionaire founder Gautam Adani, of insider trading in connection with a major acquisition by Adani Green Energy in 2021. This development adds to the growing scrutiny of the Adani Group, already facing legal and regulatory challenges in India and abroad.
Allegations of Insider Trading
According to a confidential SEBI document reviewed by Reuters, Pranav Adani allegedly shared unpublished price sensitive information (UPSI) about Adani Green Energy’s acquisition of SB Energy Holdings with his brother-in-law, Kunal Shah, before the official announcement of the deal.
The SEBI notice, sent to Pranav Adani in 2023, alleges:
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He became aware of the acquisition deal 2–3 days before it was finalized on May 16, 2021.
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He communicated this information to Kunal Shah in violation of insider trading regulations.
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Call records and trading patterns were analyzed as part of SEBI's investigation.
The $3.5 billion acquisition of SB Energy by Adani Green, announced on May 17, 2021, remains the largest transaction in India’s renewable energy sector to date.
Accused Parties and Alleged Gains
The SEBI investigation found that Kunal Shah and his brother, Nrupal Shah, engaged in trading Adani Green shares based on the insider information, resulting in alleged "ill-gotten gains" of ₹9 million (approximately $108,000).
In a statement issued through their legal counsel, the Shah brothers denied any wrongdoing, asserting that:
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Their trades were not based on any UPSI.
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They acted without any malicious intent.
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The information in question was already available in the public domain.
Pranav Adani Seeks Settlement
In an emailed response to Reuters, Pranav Adani denied any violation of securities laws and indicated that he is pursuing a settlement with SEBI. His statement emphasized that the settlement would be sought “to put an end to the matter, without admission or denial of the allegations.”
A source familiar with the proceedings confirmed that settlement discussions are ongoing, although SEBI is currently reviewing its broader settlement framework before proceeding with his plea.
Shah Brothers Contest SEBI's Terms
While SEBI proposed a similar settlement route to Kunal and Nrupal Shah, the brothers chose to contest the allegations, citing that the terms offered by the regulator were too stringent. Their decision contrasts with Pranav Adani’s approach to resolve the case without admission of guilt.
Ongoing Scrutiny of the Adani Group
This case marks another regulatory hurdle for the Adani conglomerate. In 2023, U.S. authorities indicted Gautam Adani and two executives from Adani Green for allegedly offering bribes to secure power supply contracts in India and for misleading U.S. investors. The Adani Group has strongly denied those charges, calling them “baseless.”
SEBI has not issued any official comments in response to Reuters’ queries regarding the insider trading case.
The insider trading allegations against Pranav Adani and his alleged communication of UPSI ahead of a landmark energy acquisition underscore the increasing regulatory scrutiny facing the Adani Group. As settlement talks continue and SEBI reviews its internal procedures, the outcome of this case could have significant implications for corporate governance and insider trading enforcement in India’s capital markets.
With inputs from agencies
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