Sebi bans former TV anchors: Sebi bans former TV anchor Pandya and 7 others from stock market for 5 years, fines
Pandya was the host/co-host of various shows on CNBC Awaaz till August 2021, while Alpesh Furiya appeared on the TV channel as a guest/outside expert and provided stock recommendations on his Twitter handle.
High correlation between stock recommendations given by Pradeep Pandya on the show ‘Pandya Ka Funda’ and buy-today-sell-tomorrow trading and intraday trading executed by Alpesh Furiya and related entities during the period from November 2019 to November 2019. has appeared. January 2021.
“Pradeep Pandya, while acting as anchor of CNBC Awaaz, shared confidential information regarding future stock recommendations with Alpesh Furiya and vice versa,” Sebi said in its final 55-page order.
Utilizing this privileged information, Alpesh Huriya executed trades through his own accounts and those of his affiliated entities, which enabled him to profit before the recommendations were made public, he added. The regulator also noted that Furiya passed these tips on to Opu Funikant Nag in return for a pay increase. Such behavior not only demonstrates a clear intention to exploit inside information, but also reveals a systematic approach to exploiting information asymmetries for personal gain, Sebi noted. In December 2020, the National Stock Exchange delivered a report analyzing the trading activities of Alpesh Furiya and related entities.
Sebi subsequently conducted further analysis of the matter between November 2020 and January 2021.
The regulator analyzed Pandya and Alpesh Furiya’s call data records and noted that Pandya was in a unique position to have proactive access to information relevant to the recommendations.
Pandya passed on information to Alpesh Furiya and related entities, who traded in a repetitive and consistent trading pattern in line with recommendations made by Pandya on his show.
By indulging in such transactions, the company has violated the provisions of Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.
Accordingly, Sebi banned Pandya, Alpesh Furiya and six other companies from “accessing the securities market and further prohibited them from directly or indirectly buying, selling or dealing in securities or being associated with the securities market in any way.”5 “For years.”
The regulator also imposed a fine of Rs 1 million each on Pandya and Alpesh Furiya and Rs 1 million each on the remaining six companies.
Sebi also directed Alpesh Furiya, its associated accounts and Opu Funikant Nag to recover the illegal profits earned through fraudulent transactions.
Alpesh Furiya and its associated accounts have earned illegal profits of Rs 10.73 crore, of which Rs 8.4 billion has already been seized by Sebi and now they have to recover the remaining amount of Rs 2.34 crore.
Besides, the regulator also directed Opu Funikant Nag to recover illegal profits of Rs 10.20 lakh.
