SEBI bans former TV anchor, imposes Rs 1 cr penalty for fraudulent trading; 8 others barred too

SEBI/ File Photo

The Securities and Exchange Board of India (SEBI) has prohibited former business news anchor Pradeep Pandya and eight other persons and businesses from engaging in fraudulent trading practices on his show.

SEBI has levied a Rs 1 crore penalty each on Pandya and Alpesh Vasanji Furiya, a technical analyst. In addition, six other entities were fined Rs 10 lakh each. The fines must be paid within the following 45 days, reported ANI.

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According to the ANI report, Pandya, Furiya, and others were charged with fraudulent trading practices after appearing on the business channel's show 'Pandya ka Funda'. The banned entities are Alpesh Furiya (HUF), Alpa Furiya, Manish Furiya (HUF), Mahan Investment, and Toshee Trade.

The market regulator has also directed the entities to repay Rs 10.83 crore in unjustified profits. In response to SEBI's interim order in October 2021, Rs 8.39 crore has already been deposited. The firms are now required to pay the remaining Rs 2.44 crore, plus 12 per cent interest, the report added.

Per the news agency report, in its final order, SEBI concluded that there was a strong link between Pandya's stock recommendations on 'Pandya Ka Funda' and trades undertaken by Furiya and related businesses between November 2019 and January 2021. Furiya took advantage of this confidential information to profit from trades before the advice was public.

Pandya hosted many programmes till 2021, and Furiya participated as a guest analyst, recommending companies on the channel and via social media.

The investigation revealed WhatsApp conversations between Pandya and Furiya on stock recommendations and trading tactics. These chats offered critical evidence of information sharing regarding impending recommendations, the ANI report stated.

SEBI highlighted the critical role that financial journalists and business news anchors play in the financial markets. Investors frequently rely on their observations and suggestions. When journalists divulge non-public information, like in this case, they violate ethical guidelines and affect market dynamics.

Recenttly, the Securities and Exchange Board of India (SEBI) has announced substantial changes to the requirements for submitting the 'option of nomination' for demat accounts and mutual fund portfolios. SEBI had issued a fresh circular extending the deadline for existing investors to submit their 'option of nomination' for demat accounts and mutual fund folios to June 30, 2024.

SEBI will no longer freeze accounts and folios for existing investors who have not filed nomination details, aiming to simplify investment procedures and increase investor convenience.

With agency inputs