The Securities and Exchange Board of India (SEBI) has clamped down on market manipulation by former CNBC Awaaz presenters Pradeep Pandya and Alpesh Vasanji Furiya. The couple and six other partners were fined a total of Rs. 3.6 crore for indulging in fraudulent trade activities.
According to SEBI’s inquiry, Pandya and Furiya, who regularly appeared on-air as market analysts, participated in a “buy-today-sell-tomorrow” scam. They allegedly used their market influence to manipulate stock prices through pre-meditated purchases and subsequent sales. When trading, some unscrupulous traders use their close ties to certain employees of investment banks to exploit insider information, a deceitful strategy known as “front-running,” with the intention of gaining an advantageous position compared to innocent investors competing in the market.
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Ajay Tyagi, SEBI Chairman, stated, “This incident manifests our dedication to upholding the market’s integrity and ensuring that the interests of all investors are kept safe. We intend to be taking a tough stand on any individual or firm found engaging in scams.”
Pandya and Furiya were each slapped with a fine of Rs.1 crore, while the six other entities involved received fines of Rs. 10 lakh each. Additionally, SEBI has barred all parties from the securities market for a period of five years.
This incident raises concerns about the potential for conflicts of interest within financial media.
SEBI’s action sends a strong message that analysts and anchors providing market recommendations must maintain ethical conduct and avoid activities that could mislead viewers.
The impact of this case extends beyond the individuals involved. It serves as a warning to other financial advisors and media personalities to uphold ethical standards and transparency in their dealings.
Henceforth, there is a high possibility that people watching financial advice given on television or online would become more doubtful about that advice. In terms of financial media outlets, in order to win people’s trust and maintain the reputation of being neutral especially when giving news on anything to do with money, will continue remaining vital.
This case serves as a reminder that SEBI remains watchful in its efforts to protect investor interests and guarantee a transparent and equitable Indian securities market.
