India’s markets regulator, the Securities and Exchange Board of India (Sebi), has taken a strong stance against fraudulent activities in the securities market by barring several entities, including market experts, research analysts, and guests appearing on TV channel Zee Business. These entities have been accused of engaging in activities to “influence innocent investors” and make unlawful gains.
According to an interim order issued by Sebi, the guest experts on Zee Business have made unlawful gains totaling ₹7.5 crore, which the regulator has directed to be impounded. Sebi has also prohibited them from engaging in any securities transactions for a specified period.
The individuals and companies barred from the securities market include names like Simi Bhaumik, Mudit Goyal, Himanshu Gupta, and others, who have been categorized into three groups based on their roles in the fraudulent activities.
Sebi’s investigation, conducted between February and December 2022, involved analyzing various communication channels and financial details. Some guest experts admitted to sharing recommendations before broadcast and participating in a profit-sharing model.
The regulator has restricted debit from the bank accounts of the entities and curtailed redemptions from their mutual fund holdings. However, they have been given three months to close their open positions in the derivatives market.
Sebi has granted the entities 21 days to file their replies in the matter, and has directed Zee Media to preserve all records and documents related to the shows until a final order is passed. This crackdown on fraudulent activities in the securities market highlights Sebi’s commitment to protecting investors and maintaining the integrity of the market.