Aniket PujariThe Securities and Exchange Board of India (Sebi) has closed its case against Hemant Ghai, a former TV host for CNBC Awaz, following a ₹1.45-crore settlement.
The settlement comes after a Sebi investigation found a high correlation between Ghai’s recommendations on the show ‘Stock 20-20’ and trades executed by certain entities between 1 January 2018 and 13 January 2021.
The regulator issued Ghai a show-cause notice on 24 February 2025, alleging he had communicated material non-public information about upcoming recommendations to certain entities, who shared it further and traded on it, making unlawful gains. He was asked to explain why he should not face penalties including debarment, disgorgement and fines under various provisions of the Sebi Act and the regulator’s Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market Regulations.
While the proceedings were underway, Ghai moved to settle the matter without accepting or denying the allegations. Following a meeting with his representative on 24 June, Sebi’s internal committee proposed a settlement sum of ₹1.45 crore. The high-powered advisory committee considered the case on 7 August and recommended a settlement of the same amount. A panel of Sebi’s whole-time members approved the recommendation on 8 October.
The order said while the settlement would take effect immediately, Sebi would have the right to reopen the case if any representation Ghai made during the settlement process was later found to be untrue, if any undertaking was breached, or if discrepancies emerged in calculating the settlement terms.
Family affair
Sebi’s 2021 investigation into the Ghai family found a strong correlation between the stock calls Hemant Ghai made on CNBC Awaaz and the trades carried out in the accounts of his wife and mother. According to the regulator, 81% of their trades and about 85% of their profits were tied directly to his on-air recommendations. Sebi claimed Ghai had access to his wife’s and mother’s trading accounts.
In July 2024 the regulator barred Ghai, his wife Jaya Hemant Ghai, and his mother Shyam Mohini Ghai from accessing the securities market for five years with immediate effect, citing their alleged involvement in fraudulent trading.
The regulator also directed Hemant and Jaya Ghai to repay ₹6.1 crore, along with 12% simple interest from 31 March 2020, representing profits earned through insider trading, and imposed separate penalties of ₹50 lakh on each of them. A final order in the matter was passed on 19 March 2025.
