In a significant development, the Securities and Exchange Board of India (SEBI) has raised serious allegations against Pranav Adani, a director affiliated with multiple companies under the Adani Group and the nephew of billionaire Gautam Adani. The regulator claims that he leaked sensitive information regarding a major acquisition prior to its public announcement, potentially violating insider trading regulations. This situation marks another hurdle for the Adani Group amidst ongoing scrutiny.

Allegations of Insider Trading

According to a document reviewed by sources, Pranav Adani is accused of sharing unpublished price-sensitive information (UPSI) concerning Adani Green’s acquisition of SB Energy Holdings, which was supported by SoftBank. This alleged information was reportedly disclosed to his brother-in-law, Kunal Shah, just days before the deal was made public in May 2021.

• Key details of the allegation:
  • The acquisition’s enterprise value was $3.5 billion, making it the largest deal in India’s renewable energy sector.
  • Investigations revealed that Kunal and his brother Nrupal Shah engaged in stock trading of Adani Green, resulting in profits amounting to 9 million rupees (approximately $108,000).

Pranav Adani’s Response

In a statement to the media, Pranav Adani expressed his desire to resolve the issue amicably. He stated that he is in discussions to settle the charges without admitting or denying any wrongdoing, insisting that he has not breached any securities laws. A source familiar with the situation indicated that settlement terms are currently being negotiated.

Legal Complications for Adani Group

This scrutiny follows a tumultuous period for the Adani Group. Last year, U.S. authorities indicted Gautam Adani and two executives from Adani Green on charges of bribery related to securing Indian power supply contracts and misleading American investors. The Adani Group has denied these allegations, labeling them as unfounded.

The Shah Brothers’ Stance

Kunal and Nrupal Shah maintained that their trades were executed without any knowledge of unpublished sensitive information and without any malicious intent. They asserted that the information surrounding the acquisition was already available in the public domain, thus contesting SEBI’s allegations.

Ongoing Review and Future Steps

The SEBI’s investigation included a thorough analysis of call records and trading activities associated with the Adani Group’s dealings. While the regulator has proposed a settlement for Kunal and Nrupal Shah, the brothers have opted to challenge the allegations, citing the proposed terms as excessively burdensome. As for Pranav Adani, his request for settlement will be considered once SEBI completes its current review of the settlement process.

This unfolding story highlights the complexities surrounding insider trading regulations and the challenges faced by prominent corporate figures in India. As the situation develops, all eyes will be on how SEBI navigates these serious allegations against one of India’s most prominent business families.