SEBI confirms interim orders against CNBC Awaaz Stock 20-20 host Hemant Ghai, his wife, his mother

The Securities and Exchange Board of India has confirmed the direction of the interim orders in the matter of CNBC Awaaz Stock 20-20 Show co-hosted by Hemant Ghai after a preliminary examination of transactions for the relevant period to look into the possible violations of provisions of the SEBI Act, 1992.

It was observed that Jaya Hemant Ghai, the spouse of Hemant Ghai, and his mother Shyam Mohini Ghai undertook a large number of Buy-Today-Sell-Tomorrow trades during the relevant period where recommendations on certain stocks to be traded during the day were made on the show were bought a day before telecast and sold on the day the show aired.

Trades were executed in the trading accounts of Jaya Hemant Ghai and Shyam Mohini Ghai which were prima facie in violation of provisions of SEBI Act and PFUTP Regulations(Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) and had prima facie earned proceeds amounting to Rs 2,95,18,680 through the limited number of trades examined during the relevant period.

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In the light of the preliminary examination, SEBI passed an interim order dated January 13, 2021 against Hemant Ghai, Jaya Hemant Ghai and Shyam Mohini Ghai, in which they were, restrained from buying, selling or dealing in the securities market, either directly or indirectly and Hemant Ghai was directed to cease and desist from undertaking, directly or indirectly, any activity related to giving investment advice, sell or buy recommendations, publishing of research reports.

The bank accounts of the entities to the extent of Rs 2,95,18,680 was impounded and the said entities were directed to open an escrow account with a nationalised bank, jointly and/or severally and deposit the impounded amount.

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After the course of hearing, whole-time SEBI Member Madhabi Puri Buch, considering the material on record, reply of the parties and findings exercise of the power conferred under Sections 11(1), 11(4) and 11B(1) read with Section 19 of the Securities and Exchange Board of India Act, 1992 in relation with Prohibition of Fraudulent and Unfair Trade Practices Regulations 2003, confirmed the directions of the interim order.