In a strict monitoring, market regulator Securities and Exchange Board of India (Sebi) has banned business news anchor Hemant Ghai and his family from accessing securities market over charges of fraudulent trading in an interim order issued on Wednesday. The Sebi has also directed to impound the proceeds of Rs 2.95 crore generated by fraudulent trades. Also Read: Bird Flu Scare: Don’t Consume Half-Cooked Chicken, Half-Boiled Or Half-Fried Eggs | Check Delhi Govt Advisory Here

Why Sebi banned Hemant Ghai from trading?

Ghai is the co-host of the CNBC Awaaz show which airs on trading days at 7:20 am, and it recommends certain stocks to be bought during the day with a target price and a stop loss price. In an interim order Sebi said Hemant Ghai, who had the advance information about the recommendation to be made on the “stock 20-20” show, co-hosted by him, and that he directly or indirectly used it to his advantage.

“It was observed that Ms Jaya Hemant Ghai and Ms Shyam Mohini Ghai have undertaken a large number of Buy-Today-Sell-Tomorrow (“BTST") trades during the relevant period in synchronization with the recommendations made in the show. Shares were bought on the previous day to the recommendations being made on the stock 20 -20 show and sold immediately on the recommendation day," Sebi interim order on Wednesday said.

According to the Sebi probe, prima facie the manipulative trades have earned proceeds amounting to ₹2.95 crore just through the limited number of trades examined during the period.

As per the Indian Express report, the regulator found that shares were consistently purchased in the trading accounts of Hemant Ghai”s wife and mother, a day prior to the day of recommendation on the show. In order to gain benefits from the price movement caused by the recommendations on the show, they then sold their shares as soon as the market opened on the day of the recommendation and consequently, earned profits and perpetrated a fraud upon the market and the viewers of the show, Sebi said.

Meanwhile, the Network18 group that runs the show in CNBC Awaaz said it has terminated Ghai with immediate effect, as per the Indian Express report. Network18 has issued a statement saying that the company takes its commitment to honesty and integrity seriously. We will not tolerate any behaviour which does not conform to the highest standards of professional and ethical conduct. In keeping with our values, we have terminated Mr Ghai within hours of becoming aware of the SEBI order,” it said in a statement.

“All employees of Network18 are required to pledge themselves to a code of conduct which, among other things, expressly forbids the manipulation of prices of listed securities. Ghai was also a signatory to the code of conduct," said the group in a statement.