sebi:WTM/AB/IVD/ID15/31279/2024-25
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Facts / Headnote
Noticees 1, 2, 3 and 4 held liable for contravention of PFUTP Regulations; Noticee 5 (MOFSL) held liable for violations of SEBI circulars but not under PFUTP Regulations; monetary penalties imposed on Noticees 1, 2, 3 and 4.
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 11(5)
- s. 642
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Hemant Ghai
- Jaya Ghai
- Shyam Mohini Ghai
- M/s. MAS (Authorized Person)
- Motilal Oswal Financial Services Ltd. (MOFSL)
Holding
Hemant Ghai (Noticee 1) was held liable for fraud under Regulations 3 and 4(1) of the PFUTP Regulations for trading in the accounts of his wife and mother in synchronization with his own upcoming stock recommendations on CNBC Awaaz. Noticees 2 and 3 were held liable for aiding and abetting the fraud, Noticee 4 (MAS) for facilitating fraudulent trading and KYC deficiencies, and Noticee 5 (MOFSL) for supervisory failures under SEBI circulars but not for fraud.
Full text
Order in the matter of Hemant Ghai and others Page 2 of 76 Trade Practices relating to Securities Market) Regulations, 2003 (PFUTP Regulations, 2003).
Order in the matter of Hemant Ghai and others Page 3 of 76 8. Bhavesh Patel December 15, 2023 9. Varun Dubey December 15, 2023
Order in the matter of Hemant Ghai and others Page 4 of 76 8. Pursuant to the aforesaid hearing, it was directed that SEBI will grant another opportunity of inspection, and certain information which was specifically pressed for during the hearing will be provided to the Noticees. Subsequently, after availing another opportunity to inspect documents, Noticees filed their replies dated August 23, 2024. Noticee 1 to 3 were, subsequently, provided an opportunity of personal hearing on August 26, 2024 and September 19, 2024. The hearings of Noticees 4 and 5 were also completed during this time. Thereafter, certain documents and supporting evidence in respect of certain assertions made in the replies was sought from Noticees 1 vide email dated February 01, 2025. This information was submitted by vide email dated February 17, 2025. Consideration
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Source: SecMarx — sebi:WTM/AB/IVD/ID15/31279/2024-25. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.