May 2, 2025: The Adani Group, already under regulatory fire for various controversies, now faces fresh allegations of insider trading involving Pranav Adani, a director in multiple Adani Group companies. According to a report by Reuters, the Securities and Exchange Board of India (SEBI) has accused Pranav of leaking unpublished price-sensitive information (UPSI) related to the high-profile acquisition of SoftBank-backed SB Energy Holdings by Adani Green in 2021. SEBI’s investigation suggests that Pranav informed his brother-in-law, Kunal Shah, about the deal before it was publicly disclosed, potentially giving him an unfair advantage in the stock market.
The heart of the allegation revolves around the May 2021 deal, valued at $3.5 billion—one of the largest acquisitions in India’s renewable energy sector. SEBI’s probe reveals that Pranav became aware of the impending acquisition two to three days before the formal announcement on May 16, 2021. The investigation, based on trading patterns and call records, indicates that Kunal Shah, along with his brother Nrupal Shah, used the insider information to trade in Adani Green shares, resulting in profits exceeding ₹90 lakh.
Pranav Adani has denied the allegations, maintaining that he did not violate any securities law. He stated that he is seeking to resolve the matter “without admission or denial of the allegations.” Discussions for a potential settlement are currently underway, with sources indicating that the resolution process could be protracted, pending SEBI’s review of its settlement procedure.
On the other hand, the Shah brothers—Kunal and Nrupal—have vigorously denied any wrongdoing through their legal representation. They argue that the trades made were not based on any unpublished price-sensitive information and that the relevant details of the acquisition were already publicly available at the time of their trades.
This case, which has not yet concluded, adds to the mounting regulatory scrutiny surrounding the business conglomerate. The group has faced a slew of allegations in recent years, including accusations of stock price manipulation, environmental violations, and questionable corporate governance practices. In 2023, US authorities indicted Gautam Adani and two executives from Adani Green on bribery charges, which the group vehemently denied as “baseless.”
Adani Group : SEBI Targets Pranav Over Insider Trading
The allegations against Pranav come at a time when the business conglomerate is trying to restore investor confidence after a damaging report by Hindenburg Research in early 2023. The US-based short-seller accused the conglomerate of stock manipulation and accounting fraud, allegations that Adani Group leaders continue to dismiss as unfounded.
SEBI’s scrutiny into the business conglomerate dealings, especially in the wake of the SB Energy acquisition, could have far-reaching implications for the way corporate entities handle confidential information. The outcome of this investigation could reshape the discourse on market integrity in India, sending a strong message about insider trading practices in the corporate world.
Pranav case is particularly significant because it involves high-profile individuals in one of India’s most politically influential business families. While the exact impact on the business conglomerate stock price and market positioning is yet to be determined, the regulatory scrutiny may lead to heightened vigilance and stricter compliance in corporate circles.
As the case unfolds, attention will not only focus on the legal outcomes but also on the broader effects it may have on corporate governance standards across India. The business conglomerate response and potential settlement in this insider trading case will be crucial in determining its standing in both domestic and international markets in the months ahead.
