Mumbai: Sebi has banned 15 entities from the market, including several top executives with foreign and domestic broking houses such as UBS and Edelweiss, for trafficking inside in Zee Entertainment Stock in August 2020.
The market regulator also seized “less capable benefits.” From almost Rs 24 Crore from these entities.
The internal supervision system Sebi has shown unusual price movements in the Zee stock in August last year.
After the investigation, Sebi found that the Grain Shah, a top executive in Zee, has submitted information about the results of the media that will come to the Gopal Ritolia, a director in UBS India, and Jatin Chawla, a former Director at Credit Suisse and currently the Director First Voyagers advisor.
Based on this unpublished price sensitive information (UPSI), Ritolia and Chawla bought most of Zee shares ahead of the announcement of quarterly and annual results.
This trade was carried out in the accounts of each of their mothers, said SBI report.
Chawla passed the upsi to Amit Bhanwarlal Jajoo, the authorities (AP) Efurities effect, which gave it to Manish Kumar Jajoo, his cousin who also worked with the same broking house.
Amit and Manish also bought large pieces from Zee shares before the company’s results.
They use a trading account of seven family members.
Sebi investigation, which includes scanning social media, records data records and bank reports, found that all nine trading accounts were used for trafficking insiders.
Nine began to build their position starting August 11, 2020, right after Zee revealed to the Exchange that the council would consider the results a few days later on August 18.
“Furthermore, all of these entities have a significant concentration in scripts (ZEE).
Only around the announcement compared to the previous period.
All Masterminds have used their family members’ trade accounts to avoid regulatory detection,” said the order sebi.
The investigation also found that the Ritolia and Chawla, through the trading account of each mother, had taken a significant position in Zee before the announcement of other price sensitive information, which included the previous financial results and the launch of cinema home services to the house, Zee Plex.
Ritolia and Chawla are batch friends at IIM-Lucknow.
Shah, Ritolia and Chawla know each other for more than 15 years, after working together at IIFL Securities and other brokers in the past, the Order said.
Sebi found the recurring properties of trading activities around a significant announcement by Zee to be very suspicious and, therefore, past the order while debiting entities from accessing the capital market and also seized less increases, said the regulator.