CNBC Awaaz's former anchor Hemant Ghai agreed to pay ₹1.45 crore to settle a case initiated by market regulator Securities and Exchange Board of India (SEBI) over alleged sharing of material non-public information and trading ahead of stock recommendations on his TV show ‘Stock 20-20’. In March this year, while barring Mr Ghai, his wife Jaya and mother Shyam Mohini Ghai from accessing markets for five years, SEBI had directed the TV host and his wife to disgorge Rs6.16 crore earned from the ill-gotten trades. SEBI had also imposed a penalty of Rs1.35 crore on four, including Mr Ghai, his wife Jaya, MAS Consultancy Service and Motilal Oswal Financial Services Ltd.
The settlement ends a multi-year investigation in which SEBI observed a strong correlation between his televised recommendations and the trades of certain individuals.
SEBI investigation focused on the period from 1 January 2018 to 13 January 2021, during which it detected recurring patterns of trading activity that closely matched the recommendations Mr Ghai made on air. These findings prompted SEBI to issue a detailed show-cause notice (SCN) on 24 February 2025.
The SCN alleged that Mr Ghai had communicated advance, market-sensitive information about the recommendations he planned to make on ‘Stock 20-20’ to certain persons. These individuals then shared the information further and executed trades based on the upcoming recommendations which, according to SEBI, resulted resulted in unlawful gains.
According to SEBI, this conduct constituted violations of Sections 12A(a), (b), (c), and (e) of the SEBI Act, 1992, as well as regulations 3(b), (c), (d) and 4(1) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003. The SCN called upon Mr Ghai to explain why actions such as debarment, disgorgement and monetary penalties should not be imposed.
While these proceedings were in progress, Mr Ghai submitted a settlement application under the SEBI (Settlement Proceedings) Regulations, 2018. His application sought to resolve the matter without admitting or denying the findings against him.
On 24 June 2025, Mr Ghai's authorised representative attended a meeting with SEBI’s internal committee (IC). During this meeting, the committee recommended that the matter be settled on payment of a settlement amount of ₹1.45 crore.
On 11 July 2025, Mr Ghai informed SEBI that he was willing to pay the proposed amount, although he also submitted an alternative calculation for consideration. The IC reviewed his submissions but decided not to accept the alternative computation.
The matter was then placed before the high-powered advisory committee (HPAC) on 7 August 2025. After considering the facts of the case and Mr Ghai revised proposal, the HPAC recommended that the matter be settled at the original settlement amount.
SEBI’s panel of whole-time members (WTMs) accepted the HPAC recommendation on 8 October 2025 and issued a notice of demand on 13 October 2025. Mr Ghai remitted the full settlement amount on 27 October 2025 and SEBI subsequently confirmed receipt of the payment.
With the settlement amount received, SEBI disposed the proceedings initiated through the SCN under Section 15JB read with Section 19 of the SEBI Act and Regulation 23(1) of the Settlement Regulations. The settlement order came into effect immediately.
However, SEBI clarified that it retains the right to initiate enforcement action if any representation made during the settlement process is later found to be untrue, if any conditions of the settlement undertakings are breached or if any discrepancies emerge in the agreed settlement terms.
The March 2025 order of SEBI followed a detailed investigation into suspicious trading activities that exploited non-public information related to stock recommendations aired on the channel.
The regulator found that Mr Ghai, leveraging his position as a television anchor, executed trades through the accounts of his wife and mother in a manner that aligned with his on-air stock recommendations.
In the order, Ashwani Bhatia, WTM of SEBI, says, "The systematic correlation between the timing of the recommendations and the surge in trading activity further confirms their materiality, leaving little room for doubt regarding their effect on the market."
The investigation revealed that the trades in the accounts of Jaya Ghai and Shyam Mohini Ghai were synchronised with the recommendations made by Mr Ghai during his shows on CNBC Awaaz. This practice allowed the family to gain substantial profits from market movements caused by the anchor’s public recommendations.
Mr Ghai was hosting various shows; Stock 20-20 (7:20am between Monday to Friday), Munafe Ki Taiyari Pehla Sauda and Kamai Ka Adda. Stock 20-20 is described as a show that features recommendations on certain stocks to be bought and sold during the day.
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