A former television anchor has settled a case with the Securities and Exchange Board of India, paying ₹1.46 crore, in a matter involving trades based on non-public, price sensitive information.
During its investigations, SEBI found a high correlation between the recommendations made by Hemant Ghai of CNBC Awaaz, in a television show co-hosted by him during the period January 1, 2018, and January 13, 2021, and the trades of others.
Ghai was found to have allegedly communicated material non-public information regarding recommendations to be provided on TV shows co-hosted by him to certain individuals, who them shared it with others, who then traded and made unlawful gains.
SEBI issued a show cause notice to Ghai in February, asking why he should not be debarred from the markets and the unlawful gains disgorged.
Ghai then made an application to settle the matter with SEBI, which initially recommended ₹14.6 crore as the settlement amount. This was subsequently reduced to ₹1.46 crore as the revised settlement amount, which was paid in October.