Adani’s Nephew Faces Insider Trading Allegations, Seeks SEBI Settlement
Pranav Adani, a senior executive at the Adani Group and nephew of its billionaire founder Gautam Adani, is under scrutiny by India’s markets regulator, the Securities and Exchange Board of India (SEBI), for alleged insider trading violations. The case, which has not been previously reported, marks another serious regulatory challenge for the Adani conglomerate amid growing domestic and international scrutiny.
According to a SEBI notice reviewed by Reuters, Pranav Adani is accused of sharing unpublished price-sensitive information (UPSI) related to Adani Green Energy’s 2021 acquisition of SoftBank-backed SB Energy Holdings. SEBI alleges that he disclosed details of the impending $3.5 billion acquisition—a landmark deal in India’s renewable energy sector—to his brother-in-law, Kunal Shah, before the transaction was publicly announced.
The regulator’s investigation, based on call records and trading activity, alleges that Kunal Shah and his brother Nrupal Shah used the information to trade in Adani Green shares, earning illegal profits of approximately ₹9 million ($108,000). The trades took place shortly before the acquisition was made public on May 17, 2021.
In an emailed response to Reuters, Pranav Adani stated he is seeking a settlement with SEBI “to put an end to the matter, without admission or denial of the allegations.” He firmly maintained his stance, asserting that he had not violated any securities laws. A source familiar with the matter said that settlement discussions are ongoing, though SEBI’s internal review of its broader settlement process needs to conclude before the plea can be officially taken up.
While Pranav Adani is pursuing a settlement, the Shah brothers have chosen to contest SEBI’s allegations. In a statement issued through their legal representatives, Kunal and Nrupal Shah denied trading based on any insider information and claimed the information was “already generally available in the public domain.” They also said their trades were not conducted with any dishonest intent. The brothers have rejected SEBI’s offer to settle, citing the proposed terms as overly stringent.
SEBI has not issued an official comment on the matter. However, the regulator’s documents suggest that it believes the trades were in breach of insider trading norms and caused significant regulatory concern.
This case adds to a growing list of challenges for the Adani Group, which has been under heightened scrutiny in recent years. In 2023, U.S. authorities indicted Gautam Adani and two Adani Green executives over allegations of bribery related to Indian power supply contracts and misleading U.S. investors. The group has categorically denied those allegations, calling them “baseless.”
Adani Green’s $3.5 billion acquisition of SB Energy remains the largest deal in India’s renewable energy sector. According to SEBI, Pranav Adani became aware of the acquisition two to three days before the deal was finalized, giving rise to concerns about how the information may have been used.
As the settlement talks progress and SEBI’s internal review continues, the outcome could have significant implications not just for Pranav Adani, but for regulatory enforcement across India’s capital markets.
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