Sebi debars TV experts and research analysts for 'stock manipulation'

Experts shared recommendations to certain entities before broadcast; Wrongful gains pegged at Rs 7.5 crore

The Securities and Exchange Board of India (Sebi) on Thursday barred 10 entities, including market experts, research analysts, and guests appearing on Zee Business, from the securities market for allegedly indulging in fraudulent activities by ‘influencing innocent investors’.

According to Sebi’s findings, the guest experts shared their recommendations on stocks or contracts in advance with certain entities before the broadcast on the channel.

These entities took positions in the scrip and squared off the position after the broadcast.

The profit thus made was shared with the guest experts who had given recommendations as per the prior understanding between them.

The market watchdog has estimated the unlawful gains at Rs 7.5 crore, which it has been directed to be impounded.

In the interim order, Sebi has named Kiran Jadhav, Ashish Kelkar, Himanshu Gupta, Mudit Goyal, and Simi Bhaumik, among the guest experts doling out recommendations and earning profits through other entities.

Citing urgency to take action in the case, Sebi said, “...certain entities indulged in fraudulent and unfair acts and unlawfully enriched themselves by taking advantage of being in a position to influence innocent investors.”

Sebi added that there was a risk of the unlawful gains being siphoned off beyond the reach of the regulator.

Sebi conducted investigations for the period from February 2022 to December 2022. The regulator analysed SMS, Whatsapp, and Telegram chats along with the bank and other details.

Some of the guest experts have confirmed that they were sharing recommendations before the broadcast and that they had a profit-sharing model in their statements given to Sebi.

Sebi has restricted debit from the bank accounts of the alleged wrongdoers and curtailed redemptions from their mutual fund holdings.

However, it has provided 3 months for these entities to close their open positions in the derivatives market.  

Sebi has directed Zee Media to preserve and maintain all records, documents, and video records of their shows until the final order is passed.