Sebi Flags Insider Trading In Adani-NDTV Takeover, Says Report

Securities Exchange Board of India (Sebi) has flagged yet another case of insider trading. The regulator has alleged that insider trading is likely to have taken place during Adani Enterprises’ takeover of NDTV, according to a report by the Economic Times.

The latest allegations by the market regulator are likely to be a part of its crackdown on fraudulent and unfair trade practices. Earlier in 2025, the market regulator cited instances of ‘insider trading’ in stocks such as IEX and Refex Ltd.

What Has Sebi Alleged

According to the report, which cited a Sebi document, Pranav Adani, the nephew of Gautam Adani, shared unpublished price-sensitive information regarding Adani Group's offer to acquire shareholding in NDTV with his brothers-in-law, Kunal Shah and Nrupal Shah. Notably, the information was shared in 2022, at a time when the Adani Group executed a multi-stage acquisition of the company’s shares, including an open offer.

Pranav Adani currently serves as a director of Adani Enterprises. As per the report, Pranav Adani and his brothers-in-law have been served show-cause notices. A show-cause notice has also been served to Adani’s father-in-law, Dhanpal Shah.

How Was The Alleged Insider Trading Conducted?

Earlier on October 15, the market watchdog stated in a show-cause notice that several calls were made between Adani,his brother-in-law and his father-in-law. Notably, this indicates a high frequency of communication between the individuals and Pranav Adani during the period in which Sebi alleged the exchange of UPSI.

In August 2022, JM Financial, the brokerage handling the open offer, informed stock exchanges after market hours about a public announcement relating to an open offer for NDTV. The brokerage firm mentioned in the filing that AMG Media Networks and Adani Enterprises would acquire up to 26 per cent of NDTV's share capital from public shareholders via the open offer.

The open offer would comprise a purchase of 16.76 million shares at Rs 294 apiece, leading to a transaction valued at Rs 492.81 crore.

Sebi has alleged that since JM Financial’s announcement was made after the market closed, the information would be considered UPSI before being released to the exchanges. The report added that when trading activity took place on August 24, NDTV's share price increased as the stock opened nearly 2.5 per cent higher and finished the session 5 per cent higher on the NSE. The market regulator added that the information regarding the open offer also led to a material effect on the scrip of NDTV.

Following the announcement and the price rise, Sebi launched a probe to find out whether certain entities had traded NDTV shares while possessing UPSI. Notably, Sebi’s investigation was conducted from May 2, 2022, to September 15, 2022, including the pre-UPSI, UPSI and post-announcement phases.

According to the report, the market regulator said in the document that Kunal Shah allegedly purchased NDTV shares during a period in which he possessed the unpublished information regarding the shares.

Earlier on December 13, the market regulator cleared insider trading charges against Pranav Adani and his brothers-in-law, citing a lack of evidence. Notably, the market watchdog had earlier alleged insider trading in relation to Adani Green Energy's acquisition of SB Energy Holdings.