Securities and Exchange Board of India (Sebi) took strict action against 15 people, five of whom appeared as guest experts on Zee Business news channel.
The market regulator said in its order that these people gained illegal benefits by taking contrary positions in the market compared to the on-air recommendations.
According to Sebi's order issued on February 8, the individuals were found to have earned ill-gotten gains worth Rs 7.41 billion between February 1, 2022 and December 31, 2022. did.
Some of them are directly involved in these transactions, while others facilitate them. As a result, some companies were prohibited from trading until further notice.
Sebi member Kamlesh Varshaney said, “The notification has served a specific purpose… It has been found to be in violation of the Sebi Act.” Investigation revealed that these experts shared advance information with commercial companies before airing their recommendations on Zee Business.
Sebi has classified experts, profit generators and enablers into three categories. Those who provide trading advice are classified as guest experts, but profit generators and enablers are also subject to scrutiny.
Sebi stressed the importance of investor education and the need to sensitize investors to avoid falling prey to such fraudulent schemes. “Investors need to do due diligence before accepting unfettered advice on television or social media,” Sebi said.
Sebi's interim order is aimed at protecting investors from manipulation schemes orchestrated by dishonest experts. Directly or indirectly, illegal profits are made by innocent investors who follow the advice of these professionals without realizing the fraudulent intentions behind it.
