Market regulator SEBI on Tuesday banned Pradeep Pandya, who presents a program on the stock market on a television channel, and seven other people and firms from the securities market for five years. Apart from this, they have also been collectively fined Rs 2.6 crore for indulging in fraudulent business activities. Apart from former TV anchor Pandya, the Securities and Exchange Board of India (SEBI) has imposed sanctions against Alpesh Furia, Manish Furia, Alpa Furia, Alpesh Vasanji Furia HUF, Manish V Furia HUF, Mahan Investment and Toshi Trade.
This is how they used to do fraud
Pandya used to host various programmes on business news channel CNBC Awaaz till August 2021 while Alpesh Furia appeared on the TV channel as a guest expert and also gave stock recommendations on his Twitter handle. A strong correlation was observed between Pradeep Pandya’s stock recommendations on the TV show ‘Pandya Ka Funda’ and the ‘buy today-sell tomorrow’ and intra-day trades executed by Alpesh Furia and related firms during November 2019 to January 2021. In its 55-page final order, SEBI said, “Pradeep Pandya, while working as an anchor for CNBC Awaaz, shared confidential information about upcoming stock recommendations with Alpesh Furia and Alpesh Furia took advantage of this confidential information and traded shares through his accounts and related entities. Furia thus put himself in a position to make a profit before the public broadcast of the stock recommendations.”
SEBI banned him for five years
The regulator also said that Furia also shared these suggestions with Opu Phunikant Nag in exchange for a salary hike. According to SEBI, this conduct not only reflects a clear intent to take advantage of insider information but also a systematic approach to exploit information asymmetry for personal gain. In December 2020, the National Stock Exchange had analyzed the trading activities of Alpesh Furia and related entities in a report. Subsequently, SEBI had further analyzed the matter between November 2020 and January 2021. The regulator, in its analysis of call data records of Pandya and Alpesh Furia, found that Pandya was in a unique position to gain advance access to information related to the recommendations.
Pandya informed Alpesh Furia and related entities. SEBI has barred Pandya, Alpesh Furia and six other entities from entering the securities market. Along with this, they have been banned from buying, selling or otherwise dealing in securities, directly or indirectly or being associated with the securities market in any way for five years.
directed to return illegal profits
The regulator has imposed a fine of Rs 1 crore each on Pandya and Alpesh Furia and Rs 10 lakh each on the remaining six entities. Additionally, Sebi has directed Alpesh Furia, its related accounts as well as Opu Phanikant Nag to return illegal gains earned from fraudulent trading. Alpesh Furia and its related accounts had made illegal gains of Rs 10.73 crore out of which Rs 8.4 crore has already been seized by Sebi. They have to return the remaining amount of Rs 2.34 crore. The regulator has directed Opu Phanikant Nag to return illegal gains of Rs 10.20 lakh.
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