SEBI Cracks Down On Stock Market Fraud Involving Ex-CNBC Anchor Hemant Ghai

SEBI (Securities and Exchange Board of India) has banned former CNBC anchor Hemant Ghai and his family from the stock market for five years. They have also been ordered to return ₹6.16 crore along with interest. SEBI found that Ghai used his TV influence to manipulate stock prices for personal profit, with the help of his family.

How the Fraud Happened

Zerodha, a well-known stock trading platform, shared this case on Twitter, calling it “one of the most bizarre stock fraud cases in years.” SEBI’s investigation revealed that Hemant Ghai gave stock recommendations on CNBC, influencing thousands of investors. His wife, Jaya Ghai, and mother, Shyam Mohini Ghai, then secretly bought and sold those stocks to make illegal profits.

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SEBI’s Investigation

SEBI found strong evidence against Ghai, proving that he controlled his wife’s and mother’s trading accounts. His phone number, email, and bank details were linked to those accounts. Records also showed that he frequently communicated with MAS Consultancy Services, which helped him place unauthorized trades.

To cover up their activities, they tried to hide trading records and create fake documents. SEBI also found that MAS Consultancy Services, which worked with Motilal Oswal Financial Services (MOFSL), played a role in helping Ghai execute these trades.

SEBI’s Actions

SEBI took strict action after analyzing trades from January 2019 to May 2020. They discovered that 81% of the trades in Jaya and Shyam Mohini Ghai’s accounts were directly linked to Hemant’s stock tips. These trades resulted in massive profits, leading to SEBI’s decision to ban them from the market and seize their illegal earnings.

SEBI has now imposed the following penalties: