Description

SEBI's 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 for trading based on advance information of stock recommendations given by guest experts appearing on Zee Business Channel. The investigation revealed three categories of violators: Profit Makers who executed trades based on advance information, Enablers who provided trading infrastructure support, and Guest Experts who allegedly shared non-public information prior to broadcasting recommendations.

Key Points

  • 15 entities divided into three categories: 5 Profit Makers, 5 Enablers, and 5 Guest Experts
  • Investigation stems from Interim Order cum Show Cause Notice dated February 08, 2024
  • Profit Makers allegedly executed trades based on advance information from guest experts
  • Enablers provided trading accounts, terminals, login credentials to facilitate illegal trading
  • Guest experts allegedly shared non-public information before broadcasting recommendations on Zee Business Channel
  • Case involves potential insider trading and market manipulation through media channels

Regulatory Changes

This order reinforces SEBI’s stance on preventing misuse of media platforms for disseminating privileged information and executing trades based on advance knowledge of recommendations.

Compliance Requirements

  • Media channels and guest experts must ensure no advance sharing of stock recommendations
  • Trading entities must maintain proper audit trails and compliance with insider trading regulations
  • Investment advisors appearing on media must follow disclosure and conflict of interest norms

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 highlights SEBI’s focus on preventing market manipulation through media channels. It establishes precedent for monitoring and regulating the intersection of financial media, expert recommendations, and trading activities. The case may lead to stricter compliance requirements for financial media channels and guest experts.

Impact Justification

Major SEBI enforcement action involving multiple entities and potential market manipulation through media channels