SEBI prohibits 15 guest experts from Zee Business channel for illegal trading, imposes ₹7.41 crore fine on them

On Thursday, SEBI took action against 15 guest experts from the Zee Business channel for engaging in unlawful trading. These entities collectively made gains of ₹7.41 crore from these trades, which were shared with the guest experts as per prior arrangements, SEBI observed.

The market regulator instructed the guest experts to pay ₹7.41 crore. These experts featured on the Zee Business channel between February 1, 2022, and December 31, 2022. “The details of this case reveal a clear manipulation scheme aimed at harming investors’ interests by providing misleading advice on securities, enabling profit makers to benefit at the expense of investors,” SEBI stated in its 127-page order.

It further noted that the unlawful profits earned by these individuals ultimately come from the pockets of unsuspecting investors who rely on the advice of guest experts without realizing the fraudulent nature of the scheme.

Additionally, SEBI prohibited all 10 entities “from engaging in any form of securities transactions, whether directly or indirectly, until further notice.”

Furthermore, the regulator directed Zee Media Corporation to retain and safeguard all records, documents, video recordings, and their content pertaining to the guest experts and relevant shows until the final order is issued.

Who are listed in SEBI’s order?

1. Simi Bhaumik
2. Mudit Goyal
3. Himanshu Gupta
4. Ashish Kelkar
5. Kiran Jadhav
6. Ramawatar Lalchand Chotia
7. SAAR Securities India Private Limited
8. Ajaykumar Ramakant Sharma
9. Rupesh Kumar Matoliya
10. Nitin Chhalani
11. Kanhya Trading Company
12. Manan Sharecom Private Limited
13. SAAR Commodities Private Limited
14. Partha Sarathi Dhar
15. Nirmal Kumar Soni

In its interim order, Sebi observed that Nirmal Kumar Soni, Partha Sarathi Dhar, SAAR Commodities Private Ltd, Manan Sharecom Private Ltd, and Kanhya Trading Company made profits from trades allegedly based on advance information of stock recommendations provided by guest experts Kiran Jadhav, Ashish Kelkar, Himanshu Gupta, Mudit Goyal, and Simi Bhaumik.

SEBI observed that the entities garnered illicit profits totaling ₹7.41 crore from these transactions and shared the profits with guest experts as per pre-existing agreements.

Consequently, all the entities are collectively responsible for confiscating the proceeds.

SEBI’s order stipulates that all 15 guest experts are prohibited from engaging in any form of securities transactions, directly or indirectly, until further notice.

SEBI initiated an investigation to scrutinize the close connection between trading activities of specific entities and stock recommendations provided by guest experts appearing on various shows aired on Zee Business between February 1, 2022, and December 31, 2022.

Based on the apparent correlation between trades of these entities and recommendations made by guest experts, SEBI conducted further investigation to collect evidence of potential violations of its regulations.

Following this, a search and seizure operation was conducted at the premises of the suspected entities, authorized by a court order. During the operation, electronic devices were seized, and statements were taken under oath.

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