Sebi Clears Pranav Adani of Insider Trading Allegations Linked to Adani Green Energy

On Friday, the Securities and Exchange Board of India (Sebi) exonerated Pranav Adani, a director in several Adani Group firms and nephew of billionaire Gautam Adani, from allegations of insider trading. Sebi also cleared two of his relatives of similar charges. The inquiry focused on whether Pranav Adani had disclosed confidential information about Adani Green Energy's planned acquisition of SB Energy before it became public.

The investigation scrutinised trading activities in Adani Green Energy shares from January 28 to August 20, 2021. Sebi reviewed an investigation report in November 2023, suspecting potential breaches of insider-trading regulations. Consequently, proceedings were initiated against three individuals: Pranav Adani, Kunal Dhanpalbhai Shah, and Nrupal Dhanpalbhai Shah. Kunal is married to Pranav's cousin, while Nrupal is married to Pranav's sister.

Insider Trading Allegations

Pranav Adani faced accusations of sharing unpublished price-sensitive information (UPSI), while the Shahs were alleged to have used this information for trading and gaining unlawful profits. These allegations were outlined in a show-cause notice issued on November 10, 2023. However, after a thorough investigation, Sebi found no evidence that Pranav Adani had shared any UPSI or that the Shahs had engaged in insider trading.

Sebi's 50-page order stated that a call on May 16, 2021, was not intended to communicate any UPSI by Pranav Adani. It also confirmed that the trades conducted by Kunal and Nrupal Shah were genuine and not influenced by any UPSI related to the company or its securities. The regulator concluded that the allegations could not be substantiated.

Conclusion of Investigation

Given the findings that the trades were legitimate, Sebi decided no penalties or directives were necessary. Consequently, the show-cause notice issued in November 2023 was dismissed, and the matter was closed. This decision marks the end of Sebi's inquiry into the alleged insider trading activities involving Pranav Adani and his relatives.

With inputs from PTI