Karan Adani and Former CFO B Ravi Settle PMC Projects Case With SEBI for Rs 13.65 Lakh Each

The Securities and Exchange Board of India (SEBI) has disposed of adjudication proceedings against Adani Ports and Special Economic Zone Ltd (APSEZ) Managing Director Karan Adani and the company's former Chief Financial Officer B Ravi after both individuals remitted ₹13.65 lakh each as a settlement fee.

The regulatory matter was concluded under the SEBI (Settlement Proceedings) Regulations, 2018, allowing both executives to resolve the adjudication without admitting or denying the findings of facts and conclusions of law. In an exchange disclosure, APSEZ clarified that there is no financial impact on the company arising out of the settlement order.

Genesis of the Regulatory Action

The proceedings originated from an investigation conducted by the capital markets regulator into banking transactions and inter-corporate security deposits involving PMC Projects (India) Private Limited, APSEZ, and the port operator's subsidiaries.

The market regulator had alleged non-compliance with the provisions of:

• The Securities Contracts (Regulation) Act, 1956 (SCRA)
• The SEBI Act, 1992
• Regulation 17(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR), which mandates that the Chief Executive Officer and Chief Financial Officer provide necessary compliance and financial certification to the board of directors

SEBI initially issued a show-cause notice to both executives on November 22, 2023, asking why an inquiry should not be conducted and why penalties should not be imposed.

Timeline of the Settlement Process

Legal representatives from Cyril Amarchand Mangaldas filed replies to the show-cause notices in January 2024 and submitted settlement applications under the established consent framework.

Key Procedural Milestones:

• May 8 and July 15, 2024: Meetings were held between the applicants' representatives and SEBI's Internal Committee to deliberate on the settlement terms.
• June 29, 2026: SEBI's High Powered Advisory Committee (HPAC) evaluated the proposals and recommended settling the matter on payment of ₹13.65 lakh per applicant.
• August 13, 2026: A panel of SEBI Whole-Time Members formally approved the HPAC recommendations.
• September 5, 2026: Both applicants completed the remittance of ₹13.65 lakh each, totaling ₹27.30 lakh.
• September 10, 2026: SEBI Adjudicating Officer Jai Sebastian issued the order disposing of the proceedings under Section 15JB of the SEBI Act and Section 23JA of the SCRA.

Significance for Market Participants

Transactions involving PMC Projects had previously come under regulatory scrutiny following allegations raised in early 2023. For institutional and retail investors tracking APSEZ, India's largest private port operator, the closure of these legacy regulatory proceedings helps clear compliance uncertainties surrounding key executive personnel, resolving governance questions that had remained open since the 2023 notices.

Tags: Adani Ports and Special Economic Zone APSEZ SEBI Infrastructure Corporate Governance Indian Stock Market