SEBI alleges insider trading in Adani Green Energy acquisition

This order addresses SEBI's investigation into alleged insider trading in Adani Green Energy Limited (AGEL) shares by Pranav Adani and two relatives, Kunal Shah and Nrupal Shah, during the period leading up to the public announcement of AGEL's acquisition of SB Energy.

Who it concerns: Pranav Vinod Adani (Noticee No. 1), Kunal Dhanpalbhai Shah (Noticee No. 2), Nrupal Dhanpalbhai Shah (Noticee No. 3), and Adani Green Energy Limited (AGEL).

What SEBI found or ordered

• SEBI alleged that the acquisition of SB Energy by AGEL was Unpublished Price Sensitive Information (UPSI) from April 29, 2021, to May 19, 2021.
• SEBI alleged that Noticee No. 1 (Pranav Adani) communicated this UPSI to Noticee No. 2 (Kunal Shah).
• SEBI alleged that Noticees No. 2 and 3 traded in AGEL shares while in possession of UPSI, violating the Prohibition of Insider Trading Regulations.
• SEBI calculated a notional unlawful gain of ₹50,92,500 for Noticee No. 2 and ₹40,45,268.45 for Noticee No. 3.
• All three noticees filed settlement applications in January 2024 under the SEBI Settlement Proceedings Regulations, 2018, without admitting or denying the violations.

Also in the document

• The order notes that Noticee No. 2 and Noticee No. 3 are brothers and married to relatives of Noticee No. 1.
• SEBI noted that the acquisition increased AGEL's operational capacity by 46% and overall capacity by 33%, which supported the view that the information was price-sensitive.
• The provided text is truncated and does not contain the final decision, penalty amounts, or final directions issued by SEBI.