Description

SEBI issues final order against 15 entities for trading based on advance information of stock recommendations given by guest experts on Zee Business Channel.

Summary

SEBI has issued a final order under Sections 11(1), 11(4), 11(4A), 11B(1) and 11B(2) of the SEBI Act, 1992 against 15 entities involved in trading based on advance information of stock recommendations given by guest experts appearing on Zee Business Channel. The order follows an investigation that revealed a scheme where certain entities made profits by trading on non-public information provided by guest experts before their recommendations were broadcast.

Key Points

  • 15 entities divided into three categories: Profit Makers (5 entities), Enablers (5 entities), and Guest Experts (5 entities)
  • Profit Makers: Nirmal Kumar Soni, Partha Sarathi Dhar, SAAR Commodities Private Limited, Manan Sharecom Private Limited, and Kanhya Trading Company
  • Enablers provided trading accounts, terminals, login credentials to facilitate illegal trading
  • Guest Experts: Kiran Jadhav, Ashish Kelkar, Himanshu Gupta, Mudit Goyal, and Simi Bhaumik
  • Investigation found prima facie evidence of trading based on advance information from Zee Business Channel recommendations
  • Guest experts had significant social media presence and appeared on various Zee Business shows

Regulatory Changes

This order reinforces SEBI’s stance against:

  • Trading on non-public information related to media recommendations
  • Market manipulation through coordinated trading schemes
  • Misuse of media platforms for insider trading
  • Aiding and abetting in securities violations

Compliance Requirements

  • Media houses and channels must ensure proper disclosure and prevent misuse of advance information
  • Guest experts must maintain confidentiality of recommendations until broadcast
  • Trading members must monitor suspicious trading patterns around media recommendations
  • Entities must not provide trading facilities for executing trades based on non-public information

Important Dates

  • Show Cause Notice issued: February 08, 2024
  • Final Order reference: WTM/AS/ISD/ISD-SEC-4/31540/2025-26

Impact Assessment

This enforcement action demonstrates SEBI’s commitment to maintaining market integrity and preventing manipulation through media channels. The case highlights the risks associated with trading on advance information from financial media and establishes precedent for similar violations. Market participants, especially those appearing on financial media, must ensure compliance with disclosure norms and prevent misuse of non-public information.

Impact Justification

High-profile SEBI enforcement action involving media manipulation and insider trading affecting market integrity