New Delhi: Regulator Sebi has barred ‘CNBC Awaaz’ show host Hemant Ghai, his wife and mother from the capital markets. Sebi took the decision Wednesday to bar the trio for indulging in fraudulent trading practices. Hemant Ghai had the advance information about the recommendation to be made on the ‘stock 20-20’ show, co-hosted by him. 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, Ghai has been directed to cease and desist from undertaking any activity related to giving investment advice. Ghai has also been asked not to publish research reports related to the securities market, till further directions. Further, the capital markets watchdog has also directed to impound the proceeds of Rs 2.95 crore generated by fraudulent trades.
Sebi, prima facie, found that Ghai 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 ‘stock-20-20’.
The regulator found that shares were consistently purchased in the trading accounts of Ghai’s wife and mother, one day prior to the day of recommendation on the show.
To capture the significant benefits from the price movement caused by the recommendations on the show they then sold their shares as soon as the market opened on the day of the recommendation. Consequently, they earned profits and perpetrated a fraud upon the market and the viewers of the show, it added. Ghai was prima facie using the trading accounts of his wife and mother.
The copies of the order have been sent to CNBC–TV 18 and the News Broadcasting Standards Authority (NBSA) for information and necessary action, if any, in terms of the code of conduct applicable to Hemant Ghai. In addition, CNBC-TV18 has been advised to inform viewers of the relevant shows, about the order.
