Sebi bans CNBC Awaaz show host from market
New Delhi, Jan. 13: Regulator Sebi on Wednesday barred CNBC Awaaz show host Hemant Ghai, his wife and mother from the capital markets for indulging in fraudulent trading practices.
Hemant Ghai had the advance information about the recommendation to be made on the "stock 20-20" show, cohosted by him, and that he directly or indirectly used it to his advantage, Sebi said in an interim order.
The show features recommendations on certain stocks to be bought and sold during the day.
In addition, he has been directed to cease and desist from undertaking any activity related to giving investment advice, publishing of research reports related to the securities market, till further
directions.
Further, the Sebi has also directed to impound the proceeds of Rs 2.95 crore generated by fraudulent trades.
Sebi, prima facie, found that Hemant along with his wife Jaya Hemant Ghai and mother Shyam Mohini Ghai employed a scheme to conduct fraudulent or unfair trading based on the advance information pertaining to recommendations to be made in the show "stock20-20".
On analysis of the trading pattern in the trading account of Jaya Hemant Ghai and Shyam Mohini Ghai for the period between January 1, 2019, and May 31, 2020, high correlation of their trades was observed with the stocks recommended in the show. It thereby generated the proceeds of Rs 2.95 crore by carrying out fraudulent trading in respect of recommended stocks.
The regulator found that shares were consistently purchased in the trading accounts of Hemant Ghai's wife and mother, one day prior to the day of recommendation on the show.
Hemant was prima facie using the trading accounts of his wife and mother.