IMPORTANT for TRADERS! SEBI bars 15 guest experts of Zee Business for misguiding & unlawful trading, with ₹7.41 Cr worth fine

Mumbai, Feb 9: In a fresh update from the market, 15 guest experts of Zee Business News Channel have been barred by SEBI (Securities & Exchange Board of India), the regulatory body for securities and commodity market in India. SEBI has reported that the accused experts made unlawful gains worth Rs 7.41 Crore from trades, the exact amount that the experts are expected to pay as fine.

 

 

 

 

 

 

The guest experts appeared on the Zee Business channel from 1 February 2022 and 31 December 2022. According to SEBI order with a length of 127 pages, "The facts of this case demonstrates clear scheme of manipulation to harm the interest of investors by misguiding them to take position in securities so that profit makers could make profit at the cost of such investors."

 

The order further stated, "Unlawful gains made by these profit makers come, directly or indirectly, from the pockets of innocent investors who follow the advice of guest experts unaware of the fraudulent scheme." SEBI has restrained all the 10 entities from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders.

 

 

 

 

Besides, Zee Media Corporation has also been asked to preserve and maintain all records, documents, video records, along with their content, related to the guest experts and concerned shows till the final order regarding the case is passed.

 

 

 

 

 

 

The list includes names like Simi Bhaumik, Mudit Goyal Himanshu Gupta, Ashish Kelkar, Kiran Jadhav, Ramawatar Lalchand Chotia, SAAR Securities India Private Limited, Ajaykumar Ramakant Sharma, Rupesh Kumar Matoliya, Nitin Chhalani, Kanhya Trading Company, Manan Sharecom Private Limited, SAAR Commodities Private Limited, Partha Sarathi Dhar and Nirmal Kumar Soni.

 

According to reports, SEBI has categorised them in three categories. Kiran Jadhav, Ashish Kelkar, Himanshu Gupta, Mudit Goyal, and Simi Bhaumik were involved in giving trading advice to viewers, and hence have been bracketed as guest experts. Nirmal Kumar Soni, Partha Sarathi Dhar, SAAR Commodities, Manan Sharecom and Kanhya Trading Company have been termed profit makers and rest are enablers.

 

 

 

 

“I note that the Noticees have played specific roles at various stages which have, prima facie, been found to be in violation of the SEBI Act and the regulations made thereunder. Analysis of evidences gathered in the course of investigation reveal that Guest Experts shared advance information pertaining to recommendations to be made by them with Profit Makers, before the broadcast of the recommendations on Zee Business,” said Kamlesh Varshaney, Whole Time Member, SEBI, in his order.

 

 

 

 

The Profit Makers, having received the information, took position in the scrip/contract and reversed the position or squared off the position upon broadcast of the recommendation on Zee Business, the market regulator said. The profit was then shared with guest experts as per prior understanding.

 

“I note that the Noticees are jointly and severally liable for impounding of the proceeds generated from the trades which are not in conformity with the provisions of securities laws. Such joint and several liability is restricted amongst those Noticees who made these unfair profits, who enabled certain Noticee to make unfair profits or whose recommendations led to such unfair profits,” Varshaney said.

 

"There are many experts who are spreading financial literacy in India and empowering investors to take their own decisions...the same cannot be said about a few other experts who take advantage of their mass following to make unfair profits by misguiding innocent investors,” SEBI said.

 

 

 

 

Find the SEBI order here;

 

 

Download Document 

 

 

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