Sebi slaps ₹2.6 crore fine on former CNBC Awaaz anchor Pradeep Pandya, 7 others; bans from securities market for 5 yrs

Posted by


Capital markets regulator Securities & Exchange Board of India (Sebi) on Tuesday barred former CNBC Awaaz news anchor Pradeep Pandya and seven other entities from the securities market for five years. The regulator has also imposed a fine of 2.6 crore collectively for indulging in fraudulent trading activities.

Alpesh Furiya, Manish Furiya, Alpa Furiya, Alpesh Vasanji Furiya HUF, Manish V Furiya HUF, Mahan Investment and Toshee Trade are others banned by Sebi.

Pandya was the host/co-host of various shows at CNBC Awaaz till August 2021, while Alpesh Furiya appeared on the television channel as a guest or external expert and gave stock recommendations on his Twitter handle.

Sebi has restrained Pandya, Alpesh Furiya, and other six entities from “accessing the securities market and further prohibited from buying, selling, or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner whatsoever, for a period of five years.”

Also Read: Why Sebi’s reviewing the eligibility criteria for derivatives trading?

The regulator also levied a fine of 1 crore each on Pandya and Alpesh Furiya and 10 lakh each on the remaining six entities. It has directed Alpesh Furiya, its related accounts as well as Opu Funikant Nag to disgorge unlawful gains made by fraudulent trades.

According to Sebi, Alpesh Furiya and its related accounts made an unlawful gain of 10.73 crore and of this 8.4 crore has already been impounded by Sebi and now they have to disgorge the remaining amount of 2.34 crore.

Besides, the regulator has directed Opu Funikant Nag to disgorge unlawful gain of 10.20 lakh.

The National Stock Exchange (NSE) had forwarded a report in December 2020 wherein it had analysed the trading activities of Alpesh Furiya and related entities.

Also Read: Derivatives trade: Sebi is taking a pro-market approach

Thereafter, Sebi carried out the further analysis in the matter between November 2020 and January 2021.

From November 2019 to January 2021, a high correlation was noted between the stock recommendations given by Pandya on the show ‘Pandya Ka Funda’ and the Buy-Today-Sell-Tomorrow trades and intra-day trades executed by Alpesh Furiya and connected entities.

“Pradeep Pandya, while serving as an anchor for CNBC Awaaz, shared confidential information regarding upcoming stock recommendations with Alpesh Furiya and vice-versa,” Sebi said in its final 55-page order.

Alpesh Furiya, capitalizing on this privileged information, executed trades through his own accounts and those of related entities, positioning himself to profit before the recommendations were publicly aired, it added.

Also Read: SEBI mulls boosting NRI/ OCI participation in IFSC-based FPIs. Details here

The regulator also noted that Furiya passed on these tips to Opu Funikant Nag in exchange for a salary increase.

This behaviour not only demonstrates a clear intent to leverage insider information but also reveals a systematic approach to exploiting information asymmetry for personal gain, Sebi noted.

The regulator also analysed call data records of Pandya and Alpesh Furiya and noted that Pandya was uniquely placed to have access, in advance, to the information pertaining to the recommendations.

Pandya communicated the information to Alpesh Furiya and connected entities, who in turn traded in a repeated and consistent pattern of trading, in synchronisation with the recommendations made by Pandya on his show.

By indulging in such trades, the entities violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, Sebi said.

(With inputs from PTI)

3.6 Crore Indians visited in a single day choosing us as India’s undisputed platform for General Election Results. Explore the latest updates here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.


Published: 12 Jun 2024, 11:02 AM IST


#Sebi #slaps #crore #fine #CNBC #Awaaz #anchor #Pradeep #Pandya #bans #securities #market #yrs

Leave a Reply

News. Search engine optimization.