Markets regulator SEBI has cleared Pranav Adani, a director in several Adani Group companies and nephew of billionaire Gautam Adani, of allegations related to insider trading, specifically that he shared unpublished price-sensitive information regarding Adani Green Energy’s acquisition of SB Energy.
In addition to Pranav Adani, SEBI dismissed similar charges against two of his relatives. The investigation assessed whether he disclosed confidential details about the planned acquisition prior to its public release.
SEBI focused on trading activity in Adani Green Energy Ltd (AGEL) shares between January 28 and August 20, 2021. A report submitted in November 2023 led the regulator to initiate proceedings against Pranav Adani and two others, Kunal Dhanpalbhai Shah and Nrupal Dhanpalbhai Shah, who are relatives. The Shah brothers were alleged to have traded based on information purportedly shared by Adani.
On November 10, 2023, details of the allegations were outlined in a show-cause notice. However, after completing its inquiry, SEBI found no evidence that Pranav Adani disclosed any unpublished price-sensitive information (UPSI) or that the Shah brothers engaged in trades based on insider information.
In a 50-page order, SEBI stated, “the call dated May 16, 2021, was not for communicating any UPSI by Noticee No.1 (Pranav) and trades of Noticees No. 2 (Kunal) and No. 3 (Nrupal) were genuine and not influenced by any UPSI about the company or its securities.” Thus, the regulator concluded that no penalties or directives were necessary, and the matter was closed.
The broader context of the AGEL-SB Energy transaction was also analyzed. On May 19, 2021, AGEL publicly announced the signing of share purchase agreements to acquire SB Energy, leading to an increase in AGEL’s stock price from Rs 1,198.75 on May 18 to Rs 1,243.65 on May 19, a rise of 3.75 percent.
A significant part of the inquiry involved a phone call placed by Kunal Shah to Pranav Adani on May 16, which was initially viewed as potential evidence of UPSI communication. Nevertheless, SEBI determined that news articles about the SB Energy acquisition had already been published earlier that day, meaning the information was no longer confidential. According to SEBI, information that is widely accessible through media cannot qualify as UPSI.
Additionally, the regulator noted that news reports prior to the formal announcement significantly impacted AGEL’s share price, causing it to hit the upper circuit limit with a 5 percent increase on May 17 and a 4.84 percent rise on May 18, compared to a 3.75 percent uptick on the announcement day.
As the Shah brothers’ trades occurred on May 17, after the information was public, SEBI concluded these trades could not be classified as insider trading. The regulator affirmed that the May 16 call did not involve sharing of UPSI and that the trades were appropriate.
Moreover, in a separate ruling, SEBI cleared insider-trading allegations against Vinod Bahety, Tarun Jain, Rajtaru Enterprises, and MC Jain Infoservices concerning alleged insider trading in Adani Green Energy shares.
Published on December 13, 2025.
