Repeated pattern on 90 occasions with Rs 100 cr traded value, says SEBI
New Delhi, Jan 15 (IANS) The investigation by SEBI into the alleged manipulative trading by former CNBC Awaaz anchor Hemant Ghai found that the “repeated pattern carried out on 90 occasions aggregating gross traded value of over Rs 100 crore rules out that it can be due to coincidence.”
The Securities and Exchange Board of India (SEBI) investigation found that where the first buy leg of the trades is executed just one day prior to recommendation day, it is prima facie observed that Hemant Ghai must have been aware of the buy recommendation that was going to be given the next day on the show, which gave him the confidence to execute/facilitate the buy position in the trading accounts of Jaya Hemant Ghai and Shyam Mohini Ghai again and again.
“This repeated pattern carried out on 90 occasions aggregating gross traded value of over Rs 100 crore rules out that it can be due to coincidence. The trading behaviour of the entities reflecting great confidence and incentive to trade in the pattern as discussed above shows that Hemant Ghai was having advance information of buy “recommendation”, the SEBI order said.
Ghai was sacked by his employer after the SEBI order came out.
On a query raised to MAS Consultancy with respect to the placement of orders in the trading accounts of Jaya Hemant Ghai and Shyam Mohini Ghai, the
Trading Member vide its email dated November 7, 2020, has submitted that clients Jaya Hemant Ghai and Shyam Mohini Ghai have placed orders during the period January 1, 2019 to March 30, 2020 by visiting the Branch.
Along with the said email, the Trading Member has provided certain copies of ‘Order Instruction Register’, with the order details signed by the respective clients.
“The aforesaid response of the Trading Member is prima facie not acceptable,” the SEBI order said.
It is noted from the trade details of Jaya Hemant Ghai and Shyam Mohini Ghai that trades in their trading accounts have been executed on successive days and sometimes on 3 out of 5 trading days. It is noted that the address of Jaya Hemant Ghai and Shyam Mohini Ghai as reflected in the KYC of their bank and trading accounts is in Mumbai.
“The approximate distance between Mumbai where the entities reside and Mehsana, where the Trading Member is located, is approximately 600 kms. Further, the analysis of CDR data shows that during corresponding dates of trades in the year 2020, their location was only in Mumbai and not Mehsana, Gujarat. It is also, prima facie, noted that there were no calls from the registered mobiles of Jaya Hemant Ghai and/or Shyam Mohini Ghai to the dealers of MAS Consultancy during the impugned trades. Thus, prima facie it is inferred that considering the distance between Mumbai and Mehsana, the CDR data and the age of Ms Shyam
Mohini Ghai especially when other convenient modes of order placement are there, the submission of the Trading Member that its clients used to visit their branch at Mehsana on a regular basis, is not credible and therefore cannot be accepted,” the SEBI order said.
It was observed that Jaya Hemant Ghai and 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 day previous to the recommendations being made on the stock 20-20 show and sold immediately on the recommendation day.
The trades were done through the authorised person of Motilal Oswal Financial Services Ltd., namely MAS Consultancy, Mehsana – Gujarat. It was observed that Jaya Hemant Ghai is the spouse of Hemant Ghai and Shyam Mohini Ghai is the mother of Hemant Ghai, SEBI found.
Trades were executed in the trading accounts of Jaya Hemant Ghai and Shyam Mohini Ghai which were prima facie in violation of the provisions of the SEBI Act and PFUTP Regulations, have prima facie earned proceeds amounting to Rs 2.95 crore just through the limited number of trades examined during the relevant period.