June 12 (Punjab Khabarnama) : Market regulator SEBI on Tuesday banned Pradeep Pandya, who presented 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.
Action against them
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. Pandya used to present various programs on business news channel CNBC Awaaz till August 2021, while Alpesh Furia appeared on the TV channel as a guest expert and also gave recommendations about stocks on his Twitter handle.
What is the detail
A strong correlation was observed between Pradeep Pandya’s stock recommendations given on the TV show ‘Pandya Ka Funda’ and the ‘buy today-sell tomorrow’ and intra-day deals executed by Alpesh Furia and related firms during November, 2019 to January, 2021. SEBI said in its 55-page final order, ‘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 specific information and traded shares through his accounts and related entities. In this way, Furia put himself in a position to make a profit before the public broadcast of the stock recommendations. ‘
The regulator also said that Furia also shared these suggestions with Opu Funikant 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 reflects a systematic approach to exploit information asymmetry for private gain.
What is the whole matter
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 the call data records of Pandya and Alpesh Furia, found that Pandya was in a unique position to gain advance access to information related to recommendations. Pandya provided information to 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 barred for five years from buying, selling or otherwise transacting securities, directly or indirectly or in any way connected with the securities market.
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 confiscated 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.
