Description

SEBI finalizes two-year market debarment for four entities involved in trading based on stock recommendations from Zee Business Channel guest experts.

Summary

SEBI has issued a final order imposing two-year market debarment on four entities (Partha Sarathi Dhar, SAAR Commodities Private Limited, Manan Sharecom Private Limited, and Kanhya Trading Company) for trading based on stock recommendations given by guest experts on Zee Business Channel. The debarment period is effective from February 8, 2024. Proceedings against Himanshu Gupta have been disposed of without penalty.

Key Points

  • Four entities receive two-year market debarment effective from February 8, 2024
  • Entities prohibited from buying, selling or dealing in securities directly or indirectly
  • Case relates to trading based on stock recommendations from Zee Business Channel guest experts
  • Himanshu Gupta’s case disposed of without penalty or direction
  • Interim restraint orders from February 2024 now finalized

Regulatory Changes

No new regulatory changes introduced. This represents enforcement of existing market manipulation and insider trading regulations.

Compliance Requirements

  • NSE members must ensure compliance with debarment orders
  • Debarred entities cannot access securities market in any manner
  • Members should refer to consolidated list of debarred entities on NSE website
  • Any queries to be directed to dl-invsg-all@nse.co.in

Important Dates

  • February 8, 2024: Effective date of debarment period (retroactive)
  • July 28, 2025: Date of final SEBI order
  • February 8, 2026: Expected end of two-year debarment period

Impact Assessment

This enforcement action reinforces SEBI’s commitment to preventing market manipulation through media recommendations. While the direct impact is limited to the specific entities involved, it serves as a deterrent for similar activities. Market participants and media channels may exercise increased caution regarding stock recommendations and related trading activities.

Impact Justification

High importance due to SEBI enforcement action and market manipulation case; medium impact as affects specific entities rather than broad market