Anchor Pradeep Pandya Suspended from Market for 5 Years: Analyst Alpesh to Face Action, Insider Trading Results in ₹1 Crore Penalty
The Securities and Exchange Board of India (SEBI) has levied fines of 1-1 crore rupees on former CNBC anchor Pradeep Pandya and technical analyst Alpesh Vasanji Furiya. Additionally, they have been banned from the securities market for five years.
SEBI has also imposed fines of 10-10 lakh rupees on ten other individuals and banned them from the securities market for five years as well. These entities include Alpesh Furiya (HUF), Alpa Furiya, Manish Furiya, Manish Furiya (HUF), Mahan Investment, and Toshi Trade.
Penalties Imposed for Insider Trading in the Business Sector
The recent penalties for insider trading signify a shift towards stricter enforcement. SEBI has stated that Pradeep Pandya, prior to advising on stocks at CNBC, shared information with Alpesh Furiya. In such scenarios, companies within the Alpesh Group would purchase stocks before the advice was disseminated.
SEBI has revealed that when TV anchors share such information, it’s not readily available to the public, violating ethical standards and distorting market dynamics, disadvantagering certain individuals.
SEBI emphasizes the need to deter such practices, as they can severely undermine investor confidence and disrupt market integrity. These actions were taken between November 1, 2019, and January 13, 2021.
Price Surge in Shares Following Stock Ratings
SEBI’s full-time member Ashwani Bhatia has stated that there are instances where orders show a surge in share prices and volume immediately after stock ratings are broadcasted on CNBC.
Roles of Pandya and Furiya in Broadcasting
Until 2021, Pandya served as an anchor, while Furiya was an external expert. Pandya hosted various shows on CNBC from August 2021 onwards, alongside different hosts and co-hosts.
Furiya appeared as a guest and external expert on various television channels associated with the Furiya Group, providing stock ratings through his handles.
