SEBI Clears Pranav Adani, Two Others In Insider Trading Case
The show-cause notice issued to Pranav Adani and his two relatives has now been dismissed without penalty.
The Securities and Exchange Board of India on Friday disposed off insider-trading allegations against Pranav Adani and his two relatives, Kunal Shah and Nrupal Shah, in a case tied to Adani Green Energy Ltd.'s 2021 acquisition of SB Energy Holdings Ltd.
The SEBI undertook an investigation relating to trading in the scrip of AGEL for the period from Jan. 28, 2021 to Aug. 20, 2021 and appointed an Investigating Officer (IA) on April 20, 2023. A common show cause notice was issued to Adani and the two others in November 2023.
The market regulator said in an order that the information cited by investigators had already entered the public domain before the trades occurred.
The order noted media reports on May 16, 2021 had already disclosed key details of Adani Green's talks, making the information "generally available" and nullifying allegations that Pranav Adani passed unpublished price-sensitive information to relatives.
The show-cause notice issued has now been dismissed without penalty. "... the allegations against the Noticees cannot be sustained. Since, the trades are genuine, no directions as contemplated therein can be issued," the SEBI order said.
Pranav Adani is a director at Adani Enterprises Ltd., the Adani Group’s business incubator and flagship company. He heads a diverse portfolio of businesses, including real estate, city gas distribution, media, biogas, charging infra, agro and natural resources.
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