In an interim order, the market regulator has asked several Zee Business guest experts to repay Rs 7.41 billion for alleged ill-gotten gains they made by taking positions contrary to on-air advice.
According to the Securities and Exchange Board of India's interim order, the investigation focused on the correlation between trading activities and stock recommendations by experts from February 1, 2022 to December 31, 2022.
SEBI has identified three categories of individuals. Enabler (supporting profit generators). Guest expert (provides non-public information).
SEBI issued orders against 15 experts. Mr. Simi Bhaumik, Mr. Mudit Goyal, Mr. Himanshu Gupta, Mr. Ashish Kelkar, Mr. Kiran Jadhav and others have been categorized as guest experts, profit generators and enablers. Some were directly involved in illegal trade, while others facilitated such activities. According to SEBI's February 8 order, several stocks were banned from trading until further notice.
Evidence collected for this order includes the identification of links between 15 notices based on various materials and examination of mobile phone details obtained during search and seizure operations.
Evidence includes:
(a) Demonstrate links between notifications as analyzed from documentary evidence and mobile phone details;
(b) Provide evidence of sharing prior information regarding script/contract recommendations by guest experts with profit generators before appearing on Zee Business.
(c) provide evidence of transactions conducted by commercial traders based on this prior information;
(d) Demonstrate evidence of increased trading volume and favorable price movements in line with recommendations, creating profit opportunities for profit creators.
(e) Show evidence that the profit maker shares profits with the guest expert.
SEBI's interim order outlines measures such as creation of interest-bearing escrow accounts, restrictions on trading in bank and demat accounts, and freezing of trading in securities.
Disposal of assets without permission from SEBI is prohibited and Zee Media Corp. is advised to preserve relevant records.
The Directive acts as an interim order and settlement notice, requiring companies to justify why further measures should not be imposed, such as disgorgement, prohibition of market access, and restraint of research advisory activities, based on the relevant legal provisions. I'm looking for it.
