The capital market regulator via an interim order banned Pradeep Pandya, Alpesh Vasanji Furiya, Alpesh Vasanji Furiya HUF, Manish Vasanji Furiya, Alpesh Vasanji Furiya HUF, and Alpa Alpesh Furiya from the securities market for unfair trade practices.
SEBI through its investigation found that Pradeep Pandya, who hosts several shows on business news channel CNBC Awaaz including ‘Pandya Ka Funda’, indulged in unfair practices with Alpesh Furiya, who participated in several CNBC shows as an expert or guest.
As per SEBI’s order, Pandya repeatedly shared his stock recommendations with Alpesh Furiya before they were televised on-air on CNBC Awaaz. Based on the advance information, Alpesh Furiya and his family members traded on the stocks being recommended by Pandya.
“It is, prima facie, observed that, for BTST (Buy Today Sell Tomorrow) Trades, there is a repeated and consistent pattern of buying shares on the previous day of the buy recommendations made on the show hosted or co-hosted by Mr. Pradeep Pandya and selling the same around the telecast of the buy recommendations,” the SEBI order said.
Similarly, Furiya repeatedly bought stocks in advance that were going to be recommended by Pandya on his show the next day and sold them the moment they were televised. SEBI said that Pandya and Furiya were aware that the show’s recommendations trigger a surge in the volume of the scrips.
“The orderly development of the securities market demands faith of investors in the timely action to prevent any imminent breach of securities laws. The investors who may become the victim of infringement of securities laws tend to lose confidence in the securities market,” the SEBI order said.
The regulator said that on grounds of protecting investor confidence and balance of convenience, it was necessary to prevent the accused entities from causing further immediately. To that effect, SEBI has also banned Pradeep Pandya and Alpesh Furiya from giving investment advice, sell or buy recommendations and publishing research reports till further directions.
SEBI has also impounded the bank accounts of Pradeep Pandya and Alpesh Furiya and has directed both to deposit the proceeds generated from their unfair trade practices in an escrow account.
