SEBI restrains CNBC Awaaz's Hemant Ghai from dealing in securities
Reports say that the bank accounts of two of Ghai's family members have been frozen after SEBI alleged violation of its fair trade regulations
CNBC Awaaz host Hemant Ghai has been restrained by SEBI from buying, selling or dealing in the securities market, according to a news report. He has also been served a cease and desist order, preventing him from giving any investment or stock-related advice until further directions.
Reports say that the bank accounts of two of Ghai's family members have been frozen. Ghai's wife and mother -- Jaya and Shyam Mohini -- had taken up a variety of "Buy-Today-Sell-Tomorrow" trades according to the recommendations made in the show co-hosted by him. SEBI has reportedly alleged an ex parte, ad interim order.
The board has alleged violation of the SEBI Act and Prohibition of Fraudulent and Unfair Trade Practices regulations, concluding that the two family members have gained over Rs 2.95 crore from 90 trades executed from Rs 100 crore between January 2019 to May 2020.
According to a report, a day before the stock recommendation, Jaya and Shyam Mohini would buy many shares by executing buy orders. On the next day, they execute sell trades through their accounts based on the recommendations made on Ghai's morning show.
SEBI's investigation found over 80% correlation between the trades executed by the two parties and the recommendations given on the show.
Ghai was apparently in constant touch with two MAS Consultancy employees, one of whom was managing the trades for his wife and mother's account. SEBI has concluded that Ghai had prior knowledge of the recommendations that were made on the morning show. He leveraged this information to his advantage.
SEBI pointed out that Ghai indulged in synchronised trades, which were based on non-public information and material. Such practices go against the fair and transparent principles of trade in stock markets.
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