Sebi bans former TV anchor Pradeep Pandya, 7 others from securities market for 5 years; slaps fine
PTC Web Desk: The Securities and Exchange Board of India (Sebi) has barred former TV anchor Pradeep Pandya and seven other entities from participating in the securities market for five years. The regulator imposed a Rs 2.6 crore fine collectively for fraudulent trading activities.
Apart from Pandya, Sebi has also banned Alpesh Furiya, Manish Furiya, Alpa Furiya, Alpesh Vasanji Furiya HUF, Manish V Furiya HUF, Mahan Investment, and Toshee Trade.
The Sebi has barred Pandya, Alpesh Furiya, and six other entities from "accessing the securities market and further prohibited from buying, selling, or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner whatsoever, for a period of five years."
The regulator imposed fines of Rs 1 crore on Pandya and Alpesh Furiya, and Rs 10 lakh on the other six entities. It has ordered Alpesh Furiya, its related accounts, and Opu Funikant Nag to disgorge illegal gains from fraudulent trades.
Pandya was the host/co-host of several shows on CNBC Awaaz until August 2021, while Alpesh Furiya appeared on the channel as a guest/external expert and provided stock recommendations via Twitter.
Between November 2019 and January 2021, there was a strong correlation between Pradeep Pandya's stock recommendations on the show 'Pandya Ka Funda' and the Buy-Today-Sell-Tomorrow trades and intra-day trades executed by Alpesh Furiya and related entities.
According to Debi's 55-page order, "Pradeep Pandya, while serving as an anchor for CNBC Awaaz, shared confidential information regarding upcoming stock recommendations with Alpesh Furiya and vice-versa."
Capitalising on this privileged information, Alpesh Furiya executed trades through his own and related entities' accounts, positioning himself to profit before the recommendations were made public, the report added.
The regulator also discovered that Furiya passed on these tips to Opu Funikant Nag in exchange for a pay increase.
According to Sebi, this behaviour not only demonstrates a clear intent to leverage insider information but also reveals a systematic approach to exploiting information asymmetry for personal gain.
The National Stock Exchange forwarded a report in December 2020 that analysed Alpesh Furiya and related entities' trading activities.
Sebi then conducted additional analysis on the matter between November 2020 and January 2021.
The regulator examined Pandya and Alpesh Furiya's call data records and determined that Pandya was uniquely placed to have advanced access to information regarding the recommendations.
Pandya communicated the information to Alpesh Furiya and other connected entities, who then traded in a repeating and consistent pattern in accordance with Pandya's recommendations on his show.
By engaging in such trades, the entities violated the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.
- With inputs from agencies
