Sebi bans Hemant Ghai family for insider trading

The Securities and Exchange Board of India (Sebi) has banned former CNBC Awaaz anchor Hemant Ghai, his wife Jaya, and his mother Shyam Mohini from trading for five years. This comes after they were found guilty of insider trading. Sebi also ordered them to repay ₹6.1 crore plus penalties. The ban is effective immediately. An investigation showed that Hemant Ghai's stock recommendations had a direct impact on his family's trading profits. Around 81% of the trades executed by Jaya and Shyam were linked to Hemant's advice. Sebi began looking into the Ghai family’s trading activities in 2021. They found that Hemant had control over his wife’s and mother’s trading accounts, with his personal details associated with these accounts. The investigation revealed that trading activity sharply increased following his recommendations. Sebi noted that after alerts from the National Stock Exchange raised concerns, trading in the Ghai family’s accounts stopped. When trading resumed in 2022, Jaya Ghai's profits dropped significantly. This suggested that her previous success depended on insider information. Additionally, Sebi fined MAS Consultancy Service ₹30 lakh for aiding the Ghais in their fraudulent activities. The brokerage Motilal Oswal Financial Services Ltd (MOFSL) received a fine of ₹5 lakh for not properly supervising the trades. Sebi stated that MOFSL ignored internal warnings and failed to investigate questionable trading practices. The regulator emphasized the breach of trust by Ghai, highlighting the responsibility public figures have in maintaining market integrity.