{"id":253658,"date":"2021-09-04T17:00:35","date_gmt":"2021-09-04T11:30:35","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=253658"},"modified":"2021-09-04T12:31:40","modified_gmt":"2021-09-04T07:01:40","slug":"fraudulent-trading","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/09\/04\/fraudulent-trading\/","title":{"rendered":"SEBI | A \u2018no go show\u2019&#8211;Ex-CNBC anchor, family in quagmire for fraudulent trading-Affirms interim order"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Securities and Exchange Board of India (SEBI):<\/strong> Madhabi Puri Buch, Whole Time Member, while affirming the interim order, rejected all the submission of the Noticees, on the ground that they have prima facie employed a fraudulent scheme to execute the impugned trades, resulting in the prima facie contravention of the provisions of Section 12A (b) of SEBI Act and regulations 3 (c) and (d) and 4(1) of PFUTP Regulations<\/p>\n<p style=\"text-align: justify;\">In the instant matter the Noticees, Hemant Ghai, Jaya Hemant Ghai (wife) and Shyam Mohini Ghai (mother) it was alleged that the Noticees had prima facie indulged in unfair trade practice and have prima facie employed a fraudulent scheme to execute the impugned trades, resulting in the prima facie contravention of the provisions of Section 12A (b) of SEBI Act and regulations 3 (c) and (d) and 4(1) of PFUTP Regulations, stand confirmed. Hemant Ghai was hosting the show, Stock 20-20, wherein recommendations on certain stocks to be bought\/sold during the day, were made. It was observed that Jaya Hemant Ghai (spouse) and Shyam Mohini Ghai (mother) had undertaken a large number of Buy-Today-Sell-Tomorrow trades during the Relevant Period in synchronization with the recommendations made in the Show. Shares were bought on the previous day to the recommendations being made on the Show and sold immediately on the recommendation day. The earned proceeds were amounting to Rs 2,95,18,680\/- through the limited number of trades examined during the Relevant Period.<\/p>\n<p style=\"text-align: justify;\">The Noticee made many submissions, for instance, the trades in the accounts of Jaya Ghai and Shyam Mohini Ghai were an attempt to avoid regulatory surveillance or code of conduct, that the recommendations made in the course of each episode of the Show during the Relevant Period has not been considered, and they were not provided with any report of the investigation conducted by SEBI, and had denied that the impugned trades were synchronized with the recommendations in the Show, further that the concept of lending of trading accounts is not recognized by SEBI Act or the Rules and Regulations framed thereunder, were all rejected with sound reasons by the Tribunal one by one.<\/p>\n<p style=\"text-align: justify;\">The Tribunal while confirming the interim order, held that the <em>prima facie<\/em> findings in the interim order dated January 13, 2021, that Mr Hemant Ghai, Ms Jaya Hemant Ghai and Ms Shyam Mohini Ghai have <em>prima facie <\/em>indulged in unfair trade practice and have <em>prima facie <\/em>employed a fraudulent scheme to execute the impugned trades, resulting in the <em>prima facie <\/em>contravention of the provisions of Section 12A (b) of SEBI Act and regulations 3 (c) and (d) and 4(1) of PFUTP Regulations, stand confirmed.[CNBC Awaaz \u201cStock 20-20\u201d Show co-hosted by Mr Hemant Ghai, In re, WTM\/MB\/ISD\/13305\/2021-22, decided on 02-09-2021]<\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><span style=\"color: #003300;\">Agatha Shukla, Editorial Assistant has reported this brief.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Securities and Exchange Board of India (SEBI): Madhabi Puri Buch, Whole Time Member, while affirming the interim order, rejected all the submission <\/p>\n","protected":false},"author":67011,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[46920,36926,29785,2563],"class_list":["post-253658","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-ex-cnbc-anchor","tag-fraudulent-trading","tag-law","tag-SEBI"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>SEBI | A \u2018no go show\u2019--Ex-CNBC anchor, family in quagmire for fraudulent trading-Affirms interim order | SCC Times<\/title>\n<meta name=\"description\" content=\"Fraudulent Trading\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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On analysing the trading pattern of Jaya Hemant Ghai and\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":288426,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/04\/03\/sat-reverses-sebis-order-in-arshad-warsis-pump-and-dump-case\/","url_meta":{"origin":253658,"position":1},"title":"SAT reverses SEBI&#8217;s order in Arshad Warsi&#8217;s pump and dump case","author":"Editor","date":"April 3, 2023","format":false,"excerpt":"Securities Appellate Tribunal: In the instant appeal filed against the ex parte ad-interim order passed by the Whole Time Members (WTM) of Securities Exchange Board of India (\u2018SEBI\u2019) in Arshad Warsi's case, the two-member bench of Tarun Agarwal, J. (Presiding Officer) and Meera Swarup (Technical Member), of Securities Appellate Tribunal,\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"SAT","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/MicrosoftTeams-image-969.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/MicrosoftTeams-image-969.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/MicrosoftTeams-image-969.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/MicrosoftTeams-image-969.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":252779,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/17\/sebi-zee-insider-trading-interim-ex-parte-order-bars-15-entities\/","url_meta":{"origin":253658,"position":2},"title":"SEBI | ZEE insider trading: Interim ex-parte order bars 15 entities","author":"Editor","date":"August 17, 2021","format":false,"excerpt":"Securities and Exchange Board of India (SEBI): Madhabi Puri Bach, (Whole Time Member) considering the impending danger to the interests of the investors passed an interim ex-parte order restraining all the 15 entities including Zee Entertainment Enterprises Ltd (ZEEL) from buying, selling or dealing in securities, either directly or indirectly,\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":255200,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/10\/06\/pandya-ka-sauda-turns-out-to-be-the-aakhri-sauda-for-anchor-and-5-other-entities-for-the-fraudulent-trade-activity\/","url_meta":{"origin":253658,"position":3},"title":"SEBI | \u201cPandya ka Sauda\u201d turns out to be the \u201cAakhri Sauda\u201d for anchor and 5 other entities for the fraudulent trade activity-Ex parte interim order","author":"Editor","date":"October 6, 2021","format":false,"excerpt":"Securities and Exchange Board of India (SEBI): Madhabi Puri Bach, Whole Time Member, in its ex-parte interim order restrained the anchor and the entities from the securities market,\u00a0 ordered to square off any such position in any exchange-traded derivate contracts. The Tribunal noted that, \u201c\u2026under Section 11 (4) (d) of\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":260144,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/01\/15\/billionaire-dream-turns-into-dread\/","url_meta":{"origin":253658,"position":4},"title":"SEBI | \u2018Billionaire\u2019 dream turns into dread-Unauthorsied investment advisory amounted to fraud &#038; misrepresentation","author":"Editor","date":"January 15, 2022","format":false,"excerpt":"Securities Exchange Board of India (SEBI): S.K. Mohanty, Whole Time Member while affirming an ex-parte interim order of SEBI, was of the view that the activities of the Noticees, Billionaire Solutions Pvt. Ltd. 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