The Securities and Exchange Board of India (Sebi) on Wednesday barred former news anchor Hemant Ghai and two others, including his wife, from dealing in securities for five years for their alleged involvement in fraudulent practices.
The market regulator directed Hemant and his wife Jaya Ghai to jointly disgorge over Rs 6 crore illegal gains while also imposing a penalty of Rs 50 lakh each.
Sebi also imposed fines of Rs 30 lakh on MAS Consultancy Service and Rs 5 lakh on Motilal Oswal Financial Services (MOFSL).'When high-profile TV anchors, hired by leading business channels to inform and educate investors, exploit material non-public information for personal gain, they betray the trust that underpins market transparency,' said Sebi's whole-time member Ashwani Bhatia in the order.
Sebi found that trades executed through the accounts of Ghai's family members were synchronised with stock recommendations aired on his shows. These accounts took advance positions before the broadcasts, which subsequently triggered surges in the volume and price of the recommended scrips.
The case originated with an interim order from Sebi in January 2021. A subsequent probe expanded the investigation period and scrutinised additional stock recommendations made by Ghai on the news channel.
Sebi noted that MAS Consultancy, an 'authorised person' affiliated with MOFSL, facilitated Ghai's fraudulent trades and concealed the misconduct by submitting fabricated order instruction sheets to the regulator.
MOFSL, in turn, was faulted for failing to adequately supervise MAS.
-- Khushboo Tiwari, Business Standard
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