For engaging in illegal trading, SEBI bans 15 guest experts from Zee Business channel and fines them 7.41 crore.

Sebi, the capital markets regulator, issued action orders against 15 visiting experts from Zee Business channel on Thursday for engaging in illicit trading. From these trades, the businesses realised illicit gains totaling ₹7.41 crore, and Sebi said the profit was distributed to visiting experts in accordance with an earlier agreement.

Furthermore, the market regulator ordered the guest experts to pay ₹7.41 crore. On the Zed Business channel, the professionals who hosted guests did so from February 1st, 2022 to December 31st, 2022. ” The circumstances of the case unequivocally demonstrate a scheme of manipulation meant to harm investors’ interests by duping them into buying securities so that profit-seekers might make money off of those investors.” Sebi wrote in its 127-page order.

It further stated that these profit-seekers’ illicit earnings originate, either directly or indirectly, from the purses of gullible investors who heed the counsel of visiting experts who aren’t aware of the scam.

Furthermore, until additional orders are received, Sebi prohibited all ten businesses “from buying, selling, or dealing in securities, either directly or indirectly, in any manner whatsoever.”

In addition, Zee Media Corporation has been instructed by the regulator to hold onto all documentation, video records, and information pertaining to the visiting experts and relevant shows until the last order is issued.

Simi Bhaumik, Ashish Kelkar, Kiran Jadhav, Ramawatar Lalchand Chotia, Ajaykumar Ramakant Sharma, Rupesh Kumar Matoliya, Nitin Chhalani, Kanhya Trading Company, Manan Sharecom Private Limited, SAAR Commodities Private Limited, Partha Sarathi Dhar, and Nirmal Kumar Soni are among the names on the list.

According to SEBI’s order, until additional instructions are issued, none of the 15 guest experts may purchase, sell, or deal in securities directly or indirectly.

The current proceedings are the result of an investigation carried out by Sebi to look into a high correlation between the trading activity of some entities and the stock recommendations made by guest experts who appeared on various Zee Business television shows between February 1, 2022, and December 31, 2022.

Further investigation was conducted to acquire evidence of potential violations of Sebi rules, given the apparent pattern of correlation between trades of suspicious firms and advice made by guest experts on Zee Business.

Following the acquisition of a court warrant, a search and seizure operation was conducted on the properties of suspected entities.

A number of electronic devices were seized during the investigation, and statements were recorded under oath.

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