SEBI finds prima facie violation of insider trading rules in Adani Green Energy case

This order addresses SEBI's investigation into alleged insider trading in Adani Green Energy Limited (AGEL) shares, specifically examining whether unpublished price-sensitive information regarding the acquisition of SB Energy was misused by individuals and entities.

Who it concerns: Mr. Vinod Bahety, Mr. Tarun Jain, M/s Rajtaru Enterprises, and MC Jain Infoservices Pvt Ltd.

What SEBI found or ordered

• SEBI formed a prima facie opinion that the noticees possibly violated the SEBI Act and Prohibition of Insider Trading Regulations, 2015.
• SEBI alleged that Mr. Vinod Bahety, as Head of M&A at Adani Group, was an insider in possession of Unpublished Price Sensitive Information (UPSI) regarding the SB Energy acquisition.
• SEBI alleged that Mr. Tarun Jain, Rajtaru Enterprises, and MC Jain Infoservices Pvt Ltd. traded in AGEL shares based on this UPSI.
• SEBI directed that disgorgement of unlawful profits and penalties be considered under Section 11B(2) read with Section 15G of the SEBI Act.
• The investigation period covered trading from January 28, 2021, to August 20, 2021.

Also in the document

• SEBI noted that the acquisition of SB Energy increased AGEL's operational capacity by 46% and overall capacity by 33%, which SEBI believed made the announcement price-sensitive.
• The order details a personal and professional connection between the two main individuals, noting they were in contact via phone and email during the relevant period.
• The document is a 63-page order, indicating a detailed procedural and factual analysis by SEBI.