SEBI fines former CNBC Awaaz anchor, technical analyst for engaging in fraudulent trading practices

According to reports, Pradeep Pandya and Alpesh Vasanji Furiya, along with six other entities have been barred from the securities market for five years. 

The six other entities — Alpesh Furiya (HUF), Alpa Furiya, Manish Furiya, Manish Furiya (HUF), Mahan Investment, and Toshee Trade — have been fined Rs 10 lakh each, as per reports.

SEBI said Alpesh Group entities used to carry out fraudulent trades in synchronisation with the stock recommendations given by either Pradeep Pandya or Alpesh Furiya on CNBC Awaaz, positioning themselves in an advantageous position before the information became public knowledge.

“This behaviour not only demonstrates a clear intent to leverage insider information but also reveals a systematic approach to exploiting the information asymmetry for personal gain,” the market regulator said, noting that “the present case is similar to a classical front running case where a trader tries to take advantage of the expected price change resulting from an impending transaction in securities.”

As per SEBI, Furiya and related entities have been asked to disgorge Rs 2.4 crore with simple interest at the rate of 12 percent per annum, calculated from the end of the investigation period till the date of the interim order. 

This is in addition to Rs 8.4 crore already impounded as part of the unlawful gains of Rs 10.8 crore made by Alpesh Group entities, the regulator added.

“When TV anchors engage in sharing material non-public information, it not only breaches ethical standards but also distorts market dynamics. Such acts of selective information dissemination give unfair advantages to a few, undermining the principle of equal access to information," SEBI said.

"This erosion of trust can lead to a significant loss of confidence among investors, who may feel that the markets are rigged against them," it added.