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SEBI Bans CNBC Awaaz Host Hemant Ghai, His Mother & Wife From Securities Market For Fraudulent Practices
Shreya Agarwal
14 Jan 2021 11:00 AM IST
The Securities and Exchange Board of India has issued a circular banning host of the show Stock 20-20 on CNBC Awaaz, Hemant Ghai, his wife, Jaya Hemant Ghai and mother Shyam Mohini Ghai from buying, selling or dealing in securities, either directly or indirectly until further orders.Ghai faces allegations of engaging in multiple buy-today-sell-tomorrow trades. SEBI has noted in its order that,...
The Securities and Exchange Board of India has issued a circular banning host of the show Stock 20-20 on CNBC Awaaz, Hemant Ghai, his wife, Jaya Hemant Ghai and mother Shyam Mohini Ghai from buying, selling or dealing in securities, either directly or indirectly until further orders.
Ghai faces allegations of engaging in multiple buy-today-sell-tomorrow trades. SEBI has noted in its order that, on analysis of the trading pattern of the anchor's wife and mother for the period between Jan 1, 2019 and May 31, 2020 high correlation was observed with the recommendations furnished in Hemant Ghai's show.
Based on the above, a preliminary examination was conducted for possible violations of the SEBI Act, 1992, and SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003.
SEBI noted that the aggregate positive generation of proceeds from the trades by the mother and wife, synchronized with the shows recommendations, were almost Rs. 3 crore.
SEBI further came to the conclusion that the trading strategy adopted was designed to take advantage of the price rise following the buy recommendations on the show. The fact, that these trades were being conducted from the accounts of Hemant's wife and mother, has been taken as prima facie proof of the fact that there was an attempt to avoid regulatory detection, as well.
By doing so, the order noted, the Ghais have unfairly taken advantage of the price and volume rise post recommendation.
This "is a fraud played upon the market and the viewers of the show. The viewers of the show trust the recommendation made in the show without realizing the scheme has been devised for their personal gains," the order said.
[Read Order]
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