Latest News | SAT Junks Sebi Order Against Former TV Anchor Hemant Ghai, Family Members on Rs 3.9-cr Deposit

New Delhi, Apr 1 (PTI) The Securities Appellate Tribunal (SAT) has quashed the directions passed by Sebi against former CNBC Awaaz anchor Hemant Ghai and his family members, whereby the regulator had directed them to deposit alleged unlawful gains of Rs 3.9 crore in a case pertaining to fraudulent trading practices.

However, the tribunal said it will not interfere in the restraint order passed against Hemant Ghai at this stage.

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Sebi, through an order in February, impounded the ill-gotten gains to the tune of Rs 3.9 crore from Ghai, his wife and his mother following a detailed investigation in the matter.

The detailed investigation by the capital markets regulator revealed that the total wrongful gains made by them were Rs 6.15 crore.

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However, the regulator, through an interim order in January 2021, already impounded Rs 2.95 crore from Ghai, his wife and his mother. Also, Sebi barred them from the capital markets for indulging in fraudulent trading practices.

Thereafter, a confirmatory order was passed by the Securities and Exchange Board of India (Sebi) in September last year.

Dismissing the Sebi's order, SAT said, "the impugned order of February 3, 2022 cannot be sustained for the following reasons. No reason has been given as to why the further sum of Rs 3,90,67,921 are unlawful gains. There is no discussion as to how the said figure has been arrived at".

It further said that the impugned order is violative of the principles of natural justice. When the appellants have already appeared and have contested the ex-parte ad-interim order passed in January, 2021 which was further confirmed, the markets regulator could not proceed to pass another ex-parte ad-interim order impounding further amounts.

"In the absence of providing an opportunity of hearing and in the absence of not giving any reason, the impugned order dated February 3, 2022 cannot be sustained in so far as the appeal of Hemant Ghai is concerned," SAT said in its order on March 30.

With regard to the ban imposed by Sebi, the tribunal said it is not inclined to interfere in the restraint order passed against Hemant Ghai at this stage.

"Prima facie we find that the pattern of buying shares in the trading account of wife and mother on the previous day and making recommendations on the show co-hosted by the appellant (Hemant Ghai) and selling the same immediately after the said recommendation appears to be in violation of the Sebi laws," SAT noted.

Further, the tribunal directed Sebi to hear the matter within six weeks from the date of filing of the reply by Hemant Ghai and passed the order within two months thereafter.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)