SEBI has settled a front‑running and fraudulent trade case against former CNBC Awaaz anchor Hemant Ghai after he agreed to pay a settlement amount of ₹1.45 crore, ending quasi-judicial proceedings without admitting or denying the regulator’s findings.
Allegations around ‘Stock 20-20’ trades
The case arose from trades linked to Ghai’s TV show “Stock 20‑20,” where SEBI’s 2021 investigation had found a striking correlation between stock recommendations aired on the programme and prior trades executed in the accounts of his wife Jaya Ghai and mother Shyam Mohini Ghai. The regulator alleged that material non‑public information about impending recommendations was passed on to certain persons, who then traded ahead of the broadcast to generate unlawful gains.
Show-cause notice and PFUTP violations
On 24 February 2025, SEBI issued a show‑cause notice accusing Ghai of communicating unpublished, price‑sensitive information relating to the TV calls, and of facilitating a chain of onward communication to others who also traded on this advance knowledge. These actions were alleged to violate the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations, 2003, which bar any scheme to manipulate the securities market or deceive investors.
Settlement mechanics and conditions
While proceedings were pending, Ghai moved a settlement application, seeking to close the matter through a consent‑style order without an admission of guilt but subject to monetary payment and undertakings. SEBI’s Internal Committee calculated a settlement amount of ₹1,45,60,000, rejected an alternative lower computation suggested by Ghai, and placed its recommendation before the High Powered Advisory Committee (HPAC), which cleared the proposal.
Regulator’s right to reopen the case
The final settlement order records that the arrangement takes effect immediately but preserves SEBI’s right to revive proceedings if statements made during settlement are later found to be false, if any undertakings are breached, or if discrepancies emerge in the computation of settlement terms. The case underscores SEBI’s continuing focus on TV stock tip‑driven manipulation and the use of settlement as a regulatory tool while still signalling deterrence for misuse of media platforms in the securities market.
