Description

SEBI final order against 15 entities for trading based on advance information from guest experts appearing on Zee Business Channel.

Summary

SEBI 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 interim order cum show cause notice dated February 8, 2024.

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 made profits using advance information
  • Enablers: Nitin Chhalani, Rupesh Kumar Matoliya, Ajaykumar Ramakant Sharma, SAAR Securities India Private Limited, and Ramawatar Lalchand Chotia provided trading accounts and credentials
  • Guest Experts: Kiran Jadhav, Ashish Kelkar, Himanshu Gupta, Mudit Goyal, and Simi Bhaumik provided non-public information before broadcasting recommendations
  • Investigation found guest experts had significant social media presence and gave recommendations on Zee Business Channel shows

Regulatory Changes

This order reinforces existing regulations against insider trading and market manipulation through media channels. It establishes precedent for accountability of guest experts and media personalities in stock recommendation schemes.

Compliance Requirements

  • Media channels must ensure guest experts do not engage in insider trading based on their recommendations
  • Guest experts appearing on financial shows must comply with insider trading regulations
  • Trading entities must not use advance information from media sources for profitable trades
  • Enablers providing trading infrastructure must ensure compliance with securities regulations

Important Dates

  • February 8, 2024: Interim Order cum Show Cause Notice issued
  • Investigation period covers trading activities during the scheme operation

Impact Assessment

This enforcement action significantly impacts market integrity by addressing manipulation through media recommendations. It sends strong deterrent message to guest experts, media channels, and trading entities about misuse of advance information. The order affects credibility of stock recommendation shows and may lead to stricter compliance measures for financial media content.

Impact Justification

Major enforcement action against insider trading scheme involving media recommendations affecting market integrity