SEBI Message for the viewers of the show Stock 20-20 (“Show”) aired on news channel CNBC Awaaz.


SEBI Says:

1.On analysis  of  the  trading  pattern  of  2 entities  viz. Ms.  Jaya  Hemant  Ghai and Ms. Shyam  Mohini  Ghai for  the  period  between  January  1,  2019  to  May  31,  2020 (‘Relevant Period’),  high  correlation  of  the  trades  of  the  aforesaid  entities  was observed  with  the  recommendations  furnished  in  the  show  Stock  20-20 (“Show”) aired on news channel CNBC Awaaz. 

2.Based on the aforesaid, Securities and Exchange Board of India’s (“SEBI”) conducted a preliminary 

examination for the Relevant Period to look into possible violations of provisions of the Securities 

and Exchange Board of India Act, 1992 (“SEBI Act”) and various regulations framed thereunder including SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (“PFUTP Regulations”) by certain entities including Ms.  Jaya  Hemant  Ghai and Ms.  Shyam Mohini Ghai.

SEBI’s Examination3.SEBI’s preliminary examination brought out the following:

3.1.Mr. Hemant Ghai was   hosting  / co-hosting various Shows; Stock 20-20(7:20 am between Monday to Friday), Munafe Ki Taiyari Pehla Saudaand Kamai Ka Adda

3.2.Stock  20-20  is  described  as  a  show  that  features  recommendations  on  certain stocks to 

be bought / sold during the day. 

3.3.It  was  observed  that Ms. Jaya  Hemant  Ghai  and Ms. Shyam  Mohini  Ghai  have undertaken 

a large number of Buy-Today-Sell-Tomorrow(“BTST”)trades during the  Relevant  Period  in  synchronization  with  the  recommendations  made  in  the Show. Shares  were  bought  on  the  previous  day  to  the  recommendations  being made on the stock 20-20 show and sold immediately on the recommendation day. 

3.4.The  trades  were  done  through  Authorised  Person  of  Motilal  Oswal  Financial Services Ltd., namely MAS Consultancy, Mehsana –Gujarat.

3.5.It was observed that Ms. Jaya Hemant Ghai is the spouse of  Mr. Hemant Ghai and Ms. Shyam Mohini Ghai is the mother of Mr. Hemant Ghai.

3.6.Trades  were  executed  in  the  trading  accounts  of Ms.  Jaya  Hemant  Ghai  and  Ms. Shyam Mohini Ghai which were prima facie in violation of provisions of SEBI Act and  PFUTP  Regulations,  have prima  facie earned  proceeds  amounting  to  Rs. 2,95,18,680/-just  through  the  limited  number  of  trades  examined  during  the Relevant Period.

Issues for Consideration and Prima Facie Findings

4.I  have  perused  the  findings  of  the  preliminary  examination  conducted  by  SEBI  and other  materials  available  on  record.  On  aperusal  of  the  same,  the  following  issues arise for consideration:

4.1.1.Issue No. 1: Whether prima facie, there is a repeated pattern of buying shares in the trading accounts of Ms. Jaya Hemant Ghai and Ms. Shyam Mohini Ghaion the  previous  day  to  the  recommendations  made  on  the  Show  hosted  byMr. Hemant Ghai and selling the same immediately after the said recommendation?4.1.2.Issue  No.  2: If  answer  to issue  no.  1   is  in  the  affirmative,  whether  the aforesaid prima facie pattern of trading, amounts to a prima facie scheme or device  or  artifice  that  is  in  violation  of  the  provisions  of  SEBI  Act  and Regulations?

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(साभार:www.sebi.gov.in)




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