The Securities and Exchange Board of India (SEBI) has banned Pradeep Pandya, a former CNBC Awaaz news anchor, and seven other organizations for five years for fraudulent trading practices. An inquiry indicated that Pandya provided secret stock recommendations to Alpesh Furiya, who then traded on this non-public knowledge.
Pandya's conduct violated SEBI's Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations and the Insider Trading Regulations of 2015. SEBI discovered widespread manipulation of information asymmetry, which undermined market integrity and investor confidence.
SEBI's ruling noted the Supreme Court's emphasis on "equal access to information" and referred to the US Supreme Court's misappropriation philosophy, which penalizes trading based on proprietary knowledge. As a result, Pandya, Furiya, and others were disqualified from the securities market and fined Rs 2.6 crore.
The ruling highlights the importance of ethical norms and fair practices in the stock market, to preserve investor trust and market stability.
With inputs from agencies
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