As per Reuters, SEBI has charged Pranav Adani, a director in several Adani Group firms and the nephew of billionaire founder Gautam Adani, with breaching insider trading regulations.
The SEBI notice, released last year, claims that Pranav Adani disclosed unpublished price-sensitive information (UPSI) about Adani Green’s 2021 purchase of SoftBank-supported SB Energy Holdings to his brother-in-law Kunal Shah prior to the public announcement of the deal.
Shah brothers made profits over Rs 90 lakh by trading Adani Green shares
During the investigation, call records and trading behaviors were examined. SEBI alleges that the Shah brothers, Kunal and Nrupal, later traded shares of Adani Green, earning profits over Rs 90 lakh.
Pranav Adani informed Reuters that he was aiming to settle the issue without admitting or denying the allegations and claimed he had “not violated any securities law”. The report also referenced a source who verified that negotiations for a settlement are in progress.
The Shah brothers, via their law firm, rejected any wrongdoing, asserting that the trades were not influenced by any UPSI and that the information was already widely accessible in the public domain.
Investigation adds to growing scrutiny of Adani Group
This inquiry contributes to the increasing regulatory examination of the Adani Group. Last year, US authorities charged Gautam Adani and two executives from Adani Green with unrelated bribery allegations, which the group has rejected as “baseless.”
Adani Green’s purchase of SB Energy on May 17, 2021, valued at $3.5 billion, marks the biggest acquisition in India’s renewable energy sector to date.
SEBI stated that Pranav Adani learned about the forthcoming acquisition two to three days before May 16, 2021, when the agreement was completed.
According to the Reuters report, SEBI suggested that Kunal and Nrupal Shah reach a settlement, but the brothers opted to dispute the charges because they deemed the terms excessively burdensome.
Pranav Adani’s request for settlement will be considered once SEBI completes its current assessment of the settlement procedure.
