SEBI blacklisted Pradeep Pandya of CNBC Awaaz, market expert Alpesh Furiya, and four others on Monday on allegations of engaging in fraudulent and unfair trading practices while dealing in the securities market.

Sebi stated that it has been found valid and enforceable that Alpesh Furiya and related individuals dealing in a plan to engage in fraudulent/unfair trading focused on advance knowledge of significant unpublished information.

Pradeep pandya
Youtube screenshot

The case

In December 2020, the National Stock Exchange sent a report analysing Alpesh Furiya's trading activity and linked businesses.

There was a close link between their transactions and Pradeep Pandya's suggestions on his show Pandya Ka Funda on CNBC Awaaz. Sebi conducted its investigation throughout November 2020 and January 2021.

"These businesses have a history of engaging in such illegal and unethical trading conduct," Sebi whole-time member Madhabi Puri Buch stated.

The regulator examined Pradeep Pandya's and Alpesh Furiya's call data records and determined that Pandya is positioned to get knowledge about the suggestions in advance.

"CNBC Awaaz is directed to save and keep all records, papers, materials, video records, etc., relating to Pradeep Pandya and Alpesh Furiya and connected shows," SEBI stated.

"It requires workers to keep assets for at least six months and specifies how to disclose holdings," the CNBC statement added. "Mr Pandya left our company in August. According to the SEBI ruling, his acts clearly violate our code and Network18's ethical standards. We will continue to support SEBI authorities."


Role of SEBI and another case

The SEBI Act of 1992 lists its powers. A financial intermediary, SEBI is an issuer of securities. SEBI has restructured its rules. In the stock markets, regulators are increasingly more focused on avoiding and curbing double-dealing. SEBI is currently developing a preventative monitoring system to identify fraudsters and money launderers.

The Income Tax Department and the Securities and Exchange Board of India have uncovered at least 32,000 cases in which they think such breaches occurred.

Another instance occurred when SEBI prohibited Hemant Ghai, his wife, and his mom from using the capital markets due to their involvement in fraudulent trading activities.

The market regulator alleges that the three people earned approximately Rs 3 crore between January 2019 and May 2020 by trading in equities suggested on the CNBC Awaaz television show Stock 20:20.