The Securities and Exchange Board of India (SEBI) has taken decisive action, issuing an interim order on Thursday that prohibits several entities connected with market experts, research analysts, and guests featured on Zee Business from participating in the securities market. This response follows accusations of fraudulent activities aimed at influencing unsuspecting investors.
SEBI’s order alleges that multiple entities engaged in fraudulent and unfair practices, unlawfully benefiting themselves by exploiting their influence over naive investors. The regulatory body has expressed concerns about the potential for illicit gains to evade its oversight.
The order indicates that guest experts appearing on Zee Business purportedly amassed illegal profits totaling ₹7.5 crore. SEBI has directed the impoundment of these gains and imposed restrictions preventing these individuals from engaging in securities transactions for a specified duration.
Among the entities restrained by SEBI are Simi Bhaumik, Mudit Goyal, Himanshu Gupta, Ashish Kelkar, Kiran Jadhav, Ramawatar Lalchand Chotia, SAAR Securities India Pvt. Ltd, and Kanhya Trading Co., among others. SEBI has categorized them into three groups: guest experts, profit-makers, and enablers.
The investigation, spanning from February 2022 to December 2022, involved scrutinizing SMS, WhatsApp, and Telegram communications, along with bank records. Some guest experts admitted to sharing recommendations prior to broadcast and acknowledged involvement in a profit-sharing arrangement.
SEBI executed a search and seizure operation at the premises of suspected entities, confiscating electronic devices and recording statements under oath. The regulator has also restricted debit transactions from bank accounts and curtailed redemptions from mutual fund holdings.
Entities implicated in the matter have been given a 21-day window to respond to the regulatory actions, while Zee Media has been instructed to retain all records, documents, and video recordings of their shows until a final decision is reached. SEBI has additionally provided a three-month period for the closure of open positions in the derivatives market.
This interim ruling by SEBI marks a significant step in addressing fraudulent practices within the securities sector, signaling a commitment to maintaining integrity and investor protection.