Adani Group
The Securities and Exchange Board of India (SEBI) on Friday acquitted Pranab Adani, director of several Adani Group companies and nephew of industrialist Gautam Adani, of the charges of sharing sensitive price-related information and violating insider trading rules. SEBI has also acquitted his two other relatives of these charges. The case focused on investigating whether Pranab Adani had shared confidential and price-sensitive details related to the acquisition of SB Energy by Adani Green Energy to anyone before they became public. Let us also tell you what is the whole matter.
There were allegations of insider trading
To investigate this matter, SEBI investigated the trading in shares of Adani Green Energy between 28 January 2021 and 20 August 2021. After reviewing the investigation report in November 2023, SEBI felt that there could be a violation of insider trading rules and hence issued a show cause notice to three individuals Pranab Adani, Kunal Dhanpal Bhai Shah and Nirupal Dhanpal Bhai Shah. Pranab Adani was accused of sharing unpublished price-sensitive information, while the Shah brothers were accused of illegally making profits using this information. These allegations were recorded in the show cause notice issued in November 2023.
50 page order
However, after a detailed investigation, SEBI did not find any evidence that Pranab Adani had shared any kind of confidential information or that the Shah brothers had traded on the basis of inside information. SEBI, in its 50-page order, said that the purpose of the call dated May 16, 2021 was not to share any confidential information by Pranab. The transactions of Kunal and Nirupal were genuine and were not influenced by any confidential information related to the company or its securities. The regulator concluded that the allegations could not be justified and that since the transactions were genuine, no penalty or directions were necessary.