SEBI Bans 8 Individuals for Illegal Manipulation in Stock Market

The Securities and Exchange Commission of India (SEBI) has banned eight individuals for illegal activities in the stock market. SEBI has imposed a five-year ban on former CNBC Awaaz presenter Pradeep Pandya and seven other entities for fraudulent trading practices, along with a collective fine of 26 million INR, according to PTI.

Besides Pandya, SEBI has banned Alpesh Furia, Manish Furia, Alpa Furia, Alpesh Wasanji Furia HUF, Manish V Furia HUF, Mahan Investment, and Toshi Trade. Until August 2021, Pandya hosted and co-hosted various programs on CNBC Awaaz. Alpesh Furia often appeared as a guest or external expert on the television channel and recommended various stocks on his Twitter handle.

Investigations revealed a significant correlation between the stock recommendations made by Pradeep Pandya on his show "Pandya Ka Funda" and the "Buy Today-Sell Tomorrow" and intraday trades conducted by Alpesh Furia from November 2019 to January 2021. SEBI's 55-page order indicated that Pandya and Furia shared confidential information about upcoming stock recommendations while working at CNBC Awaaz.

Alpesh Furia exploited this privileged information to conduct stock trades through his own accounts and related entities before the recommendations were made public, thereby booking profits ahead of the general investors. SEBI has fined Pandya and Furia 10 million INR each, while the remaining six entities have been fined 1 million INR each.

This incident underscores the importance of transparency and integrity in the stock market. The misuse of confidential information can severely undermine the trust of general investors. SEBI's action serves as a stern warning to others and will help prevent such illegal activities in the future.

It reaffirms the necessity of adhering to laws, regulations, and legal processes in the stock market. Shareholders and investors need to stay vigilant against such practices to protect their interests. This move will contribute to the long-term stability and credibility of the stock market.