Sebi Issues Rs 2.83 Crore Demand Notice to Former TV Anchor Pradeep Pandya and Seven Others

Sebi has issued a demand notice for Rs 2.83 crore to Pradeep Baijnath Pandya and seven other entities. This action follows their failure to pay fines related to fraudulent trading activities from June last year. The entities include Toshee Trade, Mahan Investment, Manish Vasanji Furiya HUF, Manish Vasanji Furiya, Alpa Alpesh Furiya, Alpesh Vasanji Furiya HUF, and Alpesh Vasanji Furiya.

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The demand notices were sent after these parties did not settle the penalties imposed by the Securities and Exchange Board of India (Sebi) in June last year. Sebi warned that if the payment is not made within 15 days of the notices issued on February 7, assets like bank accounts could be seized.

Fraudulent Trading Activities

In June last year, Sebi barred Pandya and the seven entities from the securities market for five years. They were collectively fined Rs 2.6 crore for engaging in fraudulent trading activities. Pandya was a host at CNBC Awaaz until August 2021, while Alpesh Furiya appeared as a guest expert and shared stock tips on his X handle.

A significant correlation was observed between stock tips given by Pandya on his show "Pandya Ka Funda" and trades executed by Alpesh Furiya and related entities. These trades occurred between November 2019 and January 2021, involving buy-today-sell-tomorrow and intra-day strategies.

Analysis and Penalties

Alpesh Furiya used privileged information to execute trades through his accounts and those of related entities. This allowed him to profit before the recommendations were made public. In December 2020, NSE analysed trading activities involving Alpesh Furiya and related entities, which led to further investigation by Sebi between November 2020 and January 2021.

Sebi found that Pandya shared information with Alpesh Furiya and connected entities. They traded in a consistent pattern that aligned with Pandya's recommendations on his show. This behaviour violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.

Regulatory Actions

Sebi has restrained Pandya, Alpesh Furiya, and six other entities from participating in the securities market for five years. Additionally, a fine of Rs 1 crore each was imposed on Pandya and Alpesh Furiya, while the remaining six entities received fines of Rs 10 lakh each.

The demand notices require these entities to pay Rs 2.83 crore, including interest and recovery costs, within 15 days. Failure to comply may result in asset attachment as per Sebi's warning.