On Wednesday, the Securities and Exchange Board of India (SEBI) passed an interim order prohibiting Hemant Ghai (CNBC TV anchor) from buying, selling or dealing in securities, directly or indirectly until further orders. Also, the order prohibits his wife and mother from doing the same.
SEBI concluded that there was prima facie evidence that Hemant Ghai, as the host of television show ‘Stock 20-20’, orchestrated trades and made financial gains.
Allegedly, Ghai used to buy shares in the name of his wife and mother and used to recommend the same shares on the TV program “Stock 20-20”. He would then sell these stocks immediately after he had made ‘buy recommendations’ in his show which in turn led to increase in price of the said shares. Trades were executed in the account of his wife and mother one day prior to the day on which he recommended those stocks. 90 such trades constituting an aggregate value of over Rs 100 crore were executed.
Also, the market regulator prohibited Hemant Ghai from any activity related to giving investment advice, market recommendations, publishing of research reports etc., related to the securities market. Further, the bank accounts of Hemant Ghai, his wife and mother were also frozen for debit until further directions.