The Securities and Exchange Board of India (SEBI) concluded its investigation into a front-running and fraudulent trading scheme linked to stock recommendations broadcasted by guest experts on the Zee Business Channel. The scheme involved trading based on advance, non-public information before these tips were aired on television.
SEBI found that a nexus of 15 individuals and entities was involved, divided into three categories:
Profit Makers: Entities that traded on the basis of pre-broadcast tips and made unlawful gains.
Enablers: Those who facilitated such trading by providing access credentials and trading infrastructure.
Guest Experts: Individuals appearing on the TV show who allegedly leaked recommendations beforehand.
SEBI settled proceedings against 10 of the 15 accused parties via a settlement order dated January 16, 2025, with collective disgorgement of ₹7.41 crore. Subsequently, all noticees except Mr. Himanshu Gupta approached SEBI for settlement pursuant to which the settlement applications filed by 10 noticees were approved, and settlement order dated January 16, 2025 was passed. Other applications were rejected.
In its final order, SEBI:
Cleared guest expert Himanshu Gupta, finding no sufficient evidence linking him to profit-making trades or unauthorized communication of tips. The circumstantial evidence (like WhatsApp mentions and coinciding show timings) was deemed inadequate.
Confirmed violations by Partha Sarathi Dhar and the other three entities, holding that they executed trades based on advance knowledge of recommendations, thus violating SEBI’s PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.
Noted that since the ₹7.41 crore gained through the scheme had already been deposited under settlement terms, no further disgorgement was needed. However, SEBI imposed monetary penalties and market access restrictions on the remaining violators.
Mr. Himanshu Gupta was represented before SEBI by Varun Lamba, Partner, AZB & Partners and Mr. Sumit Agarwal, Founder & Managing Partner, Regstreet Law Advisors.