India's market regulator Securities and Exchange Board of India (SEBI) has completed settlement proceedings against the CEO and chief financial officer of Adani Ports in a case involving PMC Projects. According to latest reports, CEO Karan Adani and CFO B Ravi each paid ₹13.65 lakh following a comprehensive settlement process that began in November 2023. The settlement was finalized on September 5, 2026, when the applicants informed SEBI that the settlement amounts had been remitted, with the market regulator confirming receipt of the payments. SEBI communicated the approval to the applicants' representatives on August 14, 2026, and the representatives later confirmed on September 5 that the settlement amount had been successfully remitted. As per The Hindu BusinessLine, the regulator disposed of the adjudication proceedings following receipt of the settlement amounts.
The settlement process involved multiple stages of regulatory review and negotiation. SEBI issued a show-cause notice (SCN) to the two key management personnel on November 22, 2023, asking them to explain why an inquiry should not be conducted and why penalties should not be imposed under Section 15HB of the SEBI Act and Section 23H of the SCRA for alleged violations. The applicants, through their authorized representatives Cyril Amarchand Mangaldas, submitted their replies to the SCN on January 16, 2024. Subsequently, they filed settlement applications seeking to resolve the adjudication proceedings under the SEBI (Settlement Proceedings) Regulations, 2018. A settlement mechanism allows entities to resolve regulatory proceedings by paying a settlement amount, without admission or denial of findings, subject to approval under the applicable settlement rules.
SEBI had alleged that Mr Ravi and Mr Adani had violated Regulation 17(8) of Part B of Schedule II of the LODR Regulations and Section 21 of the SCRA. The proceedings followed a SEBI investigation into compliance with provisions of the Securities Contracts (Regulation) Act, 1956, the SEBI Act, 1992 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, relating to banking transactions and inter-corporate security deposits involving PMC Projects (India) Private Limited, Adani Ports and Special Economic Zone Ltd (APSEZ), and the port operator's subsidiaries. The settlement order notes that the investigations were specifically in respect of banking transactions and inter-corporate security deposits among PMC Projects (India), APSEZ and its subsidiaries. The proceedings covered compliance with various regulatory frameworks including the Securities Contracts (Regulation) Act, 1956, the SEBI Act, 1992 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The settlement process included multiple meetings with SEBI's internal committee to determine the appropriate amount. Representatives of the applicants held meetings with SEBI's internal committee on May 8, 2024 and July 15, 2024, during which the committee recommended an indicative settlement amount of ₹13.65 lakh for each applicant. The applicants subsequently agreed to pay the recommended amount, filing revised settlement terms on July 19, 2024. SEBI's High Powered Advisory Committee (HPAC) recommended the settlement on June 29, 2026, which was approved by a panel of whole-time members on August 13, 2026. Following receipt of the settlement amount, SEBI disposed of the adjudication proceedings under Section 15JB of the SEBI Act and Section 23JA of the SCRA.
While the settlement has been completed, SEBI has maintained certain restrictions on the settlement's scope. The settlement order does not prejudice SEBI's right to take action under Regulation 28 of the settlement regulations, including restoring or initiating proceedings if any representation made by the applicants is subsequently found to be untrue, if they breach any undertaking or waiver submitted during the settlement proceedings, or if a discrepancy is found in arriving at the settlement terms. This limitation ensures SEBI retains flexibility to pursue action if new evidence emerges or violations are discovered during the settlement period.
