SEBI Cracks Down on Market Manipulation: Former TV Anchor and 7 Others Banned for 5 Years
In a major crackdown on market manipulation, the Securities and Exchange Board of India (SEBI) has banned former TV anchor Hemant Ghai and seven others from accessing the securities market for a period of five years. The market regulator has also imposed hefty fines on the individuals involved in the fraudulent scheme.
The Scheme Unraveled
According to SEBI's investigation, Hemant Ghai, along with his wife Jaya Hemant Ghai and mother Shyam Mohini Ghai, had been exploiting their insider knowledge and the reach of Hemant's TV show to manipulate stock prices. The trio would buy shares of companies a day before Hemant's show recommended them, and then sell the shares at a profit after the recommendation was aired, causing artificial spikes in the stock prices.
SEBI's Findings
SEBI's probe revealed that the Ghai family had made unlawful gains of over ₹2.95 crore through this scheme. The regulator also found that Hemant Ghai had shared unpublished price-sensitive information (UPSI) with his wife and mother, enabling them to trade profitably on the basis of this information.
The Penalties
In addition to banning Hemant Ghai, Jaya Hemant Ghai, and Shyam Mohini Ghai from the securities market for five years, SEBI has also imposed a fine of ₹25 crore on Hemant Ghai, ₹5 crore on Jaya Hemant Ghai, and ₹3 crore on Shyam Mohini Ghai. The regulator has also barred five other individuals, who were found to be connected to the fraudulent scheme, from accessing the securities market for five years.
SEBI's Commitment to Market Integrity
SEBI's decisive action in this case sends a strong message that the regulator will not tolerate any attempts to manipulate the securities market. The ban and hefty fines imposed on the individuals involved serve as a deterrent to others who may be tempted to engage in similar fraudulent activities.
Conclusion
The SEBI's crackdown on the Ghai family's market manipulation scheme underscores the regulator's commitment to maintaining the integrity of the Indian securities market. The penalties imposed on the individuals involved should serve as a warning to those who seek to exploit insider knowledge and manipulate stock prices for personal gain.
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