SEBI Settles 2 Insider Trading Cases Linked To Adani Group Shares

In a recent regulatory move, the Securities and Exchange Board of India (SEBI) has settled 2 insider trading cases linked to shares of the Adani Group. The cases involved transactions by Ajay Bhatia and Supreet Singh Luthra, both of whom executed trades based on unpublished price-sensitive information (UPSI) related to Adani Green Energy Ltd (AGEL).

Details of the Insider Trading Activity and SEBI’s Action

Ajay Bhatia, formerly Managing Director and CEO of QuantLase Lab LLC, which is a subsidiary of International Holding Company (IHC), was found to have acted on privileged information regarding a ₹3,850 crore preferential allotment of shares by AGEL to IHC Capital Holding LLC. Bhatia received UPSI through emails on April 2 and April 4, 2022, and used it to execute trades worth ₹8.69 crore across shares of Adani Green Energy Ltd (AGEL), Adani Enterprises Ltd (AEL), and Adani Transmission Ltd (ATL).

He earned unlawful gains of ₹55.34 lakh. As per the final settlement, Bhatia agreed to pay ₹1.04 crore along with disgorgement of the gains. Additionally, he accepted a voluntary debarment from trading in Indian securities markets for 6 months. SEBI’s High-Powered Advisory Committee (HPAC) reviewed the matter before finalising the settlement.

Supreet Singh Luthra's Role and Penalty Imposed

Supreet Singh Luthra, a consultant closely associated with Bhatia, also executed trades on April 8, 2022, based on information shared by Bhatia. He purchased AGEL, AEL, and ATL shares worth ₹1.32 crore and accrued illegal gains of ₹13.13 lakh. SEBI settled Luthra’s case after he paid ₹40 lakh in settlement charges and returned the unlawful earnings. He too consented to a 6-month voluntary debarment from the securities market.

Read More: Adani Group Plans to Invest ₹30,000 Crore to Expand its Port Business!

Settlement Under SEBI Norms Without Admission of Guilt

Both cases were resolved under SEBI’s settlement regulations, which permit parties to settle violations without admitting or denying guilt. The total recovery from both individuals exceeded ₹2 crore, demonstrating SEBI’s continuing commitment towards curbing insider trading and reinforcing transparency in the Indian capital markets.

Conclusion

The Adani insider trading cases involving Bhatia and Luthra underscore the importance of regulatory vigilance in maintaining market integrity. Their voluntary debarments and financial penalties reflect SEBI’s stance on proactive enforcement, even as it offers avenues for amicable resolution under settlement norms.

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