For using advanced stock recommendations made on Zee Business shows to carry out fraudulent trades and pocket illicit gains, market regulator Securities and Exchange Board of India (SEBI) barred four entities, Partha Sarathi Dhar, SAAR Commodities Pvt Ltd, Manan Sharecom Pvt Ltd and Kanhya Trading Company from markets for one year. SEBI also slapped a penalty of Rs4 crore on these four. These entities were found to have colluded with others to profit from recommendations that were supposed to be disclosed live on television, but were leaked in advance.
In an order, Amarjeet Singh, whole-time member (WTM) of SEBI says, "The systematic artifice to exploit the impact of the recommendations of guest experts on a nationally broadcasted news channel by taking prior positions and subsequently squaring them off at beneficial prices, cannot, by any reasonable standard, be characterised as rooted in good faith. The profit makers did not make profits out of good fortune but by malicious design. Accordingly, the arguments in this regard are rejected as being without merit and contrary to the established facts."
The four entities had been identified by SEBI as 'profit-makers' in an earlier interim order, along with a set of enablers and guest experts. SEBI’s investigation, which covered the period from February to December 2022, revealed that certain guest experts appearing on Zee Business were sharing their trading recommendations in advance with select traders. These traders would buy into the recommended stocks just before the tips went public on air and then exit the trades shortly after the show aired, booking sure-shot profits as the stock prices moved in response to the televised advice.
The regulator has imposed monetary penalties on all four parties. SAAR Commodities has been fined Rs2 crore, Manan Sharecom and Kanhya Trading Company have been fined Rs75 lakh each, while Partha Sarathi Dhar has been fined Rs50 lakh. The order noted that although the entities had already disgorged their unlawful gains as part of a Rs7.41 crore recovery earlier directed by SEBI, the severity and nature of the violations warranted further punitive action to deter similar schemes. (Read:
SEBI Directs Guest Experts of Zee Business Channel To Cough Up Rs7.41 Crore Illegal Gains)
The Rs7.41 crore was recovered jointly from 15 entities through an escrow account following the interim order issued in February 2024. Of the 15 entities originally issued show-cause notices, ten settled the case through SEBI’s settlement mechanism, accepting temporary debarment and agreeing to disgorge their gains. These included several guest experts and enablers. However, settlement requests from the four penalised entities were either rejected or withdrawn, leading to the issuance of the final order. (Read:
10 including 4 Expert Guests of Zee Business Channel Pay Over Rs5.64 Crore To Settle Case with SEBI)
Zee Business channel guests Kiran Jadhav, Ashish Kelkar and Mudit Goyal paid Rs62.40 lakh each while Simi Bhaumik paid Rs46.80 lakh to SEBI. Nirmal Kumar Soni paid Rs 62.40 lakh, while Nitin Chhalani, Rupesh Kumar Matoliya, Ajaykumar Ramakant Sharma and Ramawatar Lalchand Chotia paid Rs57.20 lakh each. SAAR Securities India Pvt Ltd paid Rs31.85 lakh to SEBI to settle the case.
The investigation by SEBI focused on stock recommendations made by guest experts on Zee Business Channel. The probe revealed that between February 2022 and December 2022, 15 entities had allegedly traded using non-public information (NPI) derived from these recommendations.
The entities were categorised into three groups: profit-makers (those who profited from the recommendations), enablers (those who facilitated trading by providing accounts and tools) and the guest experts who provided the stock recommendations on TV and social media.
SEBI’s order detailed how the TV guest experts had significant reach and influence due to their regular appearances on Zee Business and large followings on social media. A clear pattern emerged where the profit makers repeatedly executed trades just before recommendations were aired. These trades were placed with the help of the enablers who provided access to trading terminals and accounts. The pattern of immediate squaring-off of trades after the televised recommendations confirmed a deliberate intent to exploit non-public information for personal gain.
According to the market regulator, 15 entities devised or employed a scheme where guest experts, before making recommendations on Zee Business, communicated such information amongst each other and also with profit-makers in advance. "These profit makers then engaged in executing the first leg of trade just before the recommendation to be aired and then after the recommendation has been aired, close the position with the second leg of transaction, and in the process, the profit makers have earned a profit of Rs7.41 crore during the investigation period."
While the entities under the scanner claimed their trades were based on regular market analysis or input from family members, SEBI dismissed these arguments, stating that the precision and timing of trades could not be coincidental. The market regulator also noted that the fact that some trades were loss-making or that other recommendations were not acted upon did not absolve the entities of guilt in the trades that clearly exploited leaked information. It pointed out that the manipulation was sophisticated but deliberate undermining the integrity of the securities market and giving certain players an unfair advantage.
The final order marks the culmination of a high-profile investigation that highlighted how financial television shows could be misused by insiders for unlawful gain. Notably, one of the guest experts, Himanshu Gupta, was exonerated after SEBI found that there was insufficient evidence directly linking him to the fraudulent trades. While circumstantial indicators were examined, SEBI concluded that the required threshold of proof was not met in his case.
In its concluding remarks, SEBI reiterated that such practices go against the very foundation of a fair and transparent securities market. The regulator emphasised that regardless of whether other investors suffered direct losses, the exploitation of non-public recommendations for guaranteed profits constitutes a serious breach of market conduct rules. The order sends a strong signal to market participants and media-linked financial influencers that any attempt to misuse privileged platforms for personal enrichment will be met with strict regulatory action.
