New Delhi: Sebi has sent a demand notice to Pradeep Baijnath Pandya, who was anchoring stock market shows on a television channel, and seven other entities for failing to pay Rs 2.83 crore fines that have been imposed in connection with fraudulent trading activities.
Apart from Pandya, Toshee Trade, Mahan Investment, Manish Vasanji Furiya (HUF), Manish Vasanji Furiya, Alpa Alpesh Furiya, Alpesh Vasanji Furiya (HUF) and Alpesh Vasanji Furiya were also sent notices to pay the fines.
The demand notices came after these entities failed to pay the penalties imposed on them by the Securities and Exchange Board of India (Sebi) in June last year.
A high correlation was noted between the stock recommendations given by Pradeep Pandya on the show ‘Pandya Ka Funda’ and the Buy-Today-Sell-Tomorrow trades and intra-day trades executed by Alpesh Furiya and connected entities during the period from November 2019 to January 2021.
“Pradeep Pandya, while serving as an anchor for CNBC Awaaz, shared confidential information regarding upcoming stock recommendations with Alpesh Furiya and vice-versa,” Sebi said in its final 55-page order.
Alpesh Furiya, capitalizing on this privileged information, executed trades through his own accounts and those of related entities, positioning himself to profit before the recommendations were publicly aired, it added.
The regulator also noted that Furiya passed on these tips to Opu Funikant Nag in exchange for a salary increase.
This behaviour not only demonstrates a clear intent to leverage insider information but also reveals a systematic approach to exploiting information asymmetry for personal gain, Sebi noted.
In December 2020, the National Stock Exchange had forwarded a report wherein it had analysed the trading activities of Alpesh Furiya and related entities.
Thereafter, Sebi carried out further analysis of the matter between November 2020 and January 2021.
The regulator analyzed call data records of Pandya and Alpesh Furiya and noted that Pandya was uniquely placed to have access, in advance, to the information about the recommendations.
Pandya communicated the information to Alpesh Furiya and connected entities, who in turn traded in a repeated and consistent pattern of trading, in synchronization with the recommendations made by Pandya on his show.
By indulging in such trades, the entities violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.
Accordingly, Sebi has restrained Pandya, Alpesh Furiya, and other six entities from “accessing the securities market and further prohibited from buying, selling, or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner whatsoever, for five years”.
Also, the regulator levied a fine of Rs 1 crore each on Pandya and Alpesh Furiya and Rs 10 lakh each on the remaining six entities.
Additionally, Sebi has directed Alpesh Furiya, its related accounts as well as Opu Funikant Nag to disgorge unlawful gains made by fraudulent trades.
Alpesh Furiya and its related accounts made an unlawful gain of Rs 10.73 crore and of this Rs 8.4 crore has already been impounded by Sebi and now they have to disgorge the remaining amount of Rs 2.34 crore.
Besides, the regulator has directed Opu Funikant Nag to disgorge an unlawful gain of Rs 10.20 lakh.
