Sebi Cracks Down on Unfair Stock Trading Scheme
Sebi has barred four entities from the securities market for two years, charging a Rs 4 crore penalty for exploiting advance stock recommendations. The entities profited from insider trading, unfairly impacting public investors. No penalty was imposed on Himanshu Gupta, a guest expert, due to lack of evidence.
- Country:
- India
Sebi has taken significant punitive action against four entities, prohibiting them from participating in the securities market for two years. The entities are also collectively fined Rs 4 crore for exploiting advance stock recommendations shared by guest experts on a popular business channel.
An investigation uncovered a scheme allowing these entities to profit from pre-shared stock tips, creating inequitable trading conditions for ordinary investors. Evidence highlighting this malpractice included WhatsApp chats and distinct trading patterns.
The commission stated that the deliberate information asymmetry led to approximately Rs 7.41 crore in unlawful gains, which have been reimbursed in a settlement process. While proceedings against guest expert Himanshu Gupta were dismissed, the barred entities remain under strict trading restrictions until the stipulated period ends.
(With inputs from agencies.)
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