Former news anchor Hemant Ghai on Tuesday settled a case involving fraudulent trades based on advance information with markets regulator Sebi after paying Rs 1.45 crore.
Sebi, in its show cause notice, alleged that Ghai communicated material non-public information regarding recommendations to be provided on TV shows co-hosted by him to certain other persons.Such persons subsequently shared the information with others and also traded on the basis of such communication, which led to them making unlawful gains, the regulator alleged in its show cause notice issued in February.
The regulator issued the show cause notice for alleged violation of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms after observing a high correlation between the recommendations made by Ghai in the show "stock 20-20" co-hosted by him on CNBC Awaaz, during the period from January 1, 2018 to January 13, 2021, and trades of certain others.
While the proceedings were pending, Ghai filed an application under the settlement rules, proposing to settle the proceedings, "without admitting or denying the findings of fact and conclusions of law".
Following this, he paid Rs 1.45 crore to settle the charges.
"In view of the acceptance of the settlement terms and receipt of above mentioned settlement amount by Sebi, the specified proceedings initiated against the applicant vide SCN (show cause notice) dated February 24, 2025 are disposed of," the regulator said in its order.
In March, Sebi barred Ghai and his family members from the securities markets for five years for violating regulatory norms.### Hemant Ghai's Rs 1.45 Cr Settlement: Ex-CNBC Anchor Closes Chapter on SEBI Front-Running Probe
In a swift regulatory resolution, former CNBC Awaaz news anchor Hemant Ghai—best known for hosting the high-octane stock-picking show *Stock 20-20*—has forked over **Rs 1.45 crore** to the Securities and Exchange Board of India (SEBI) to settle allegations of front-running trades fueled by his insider tips. The deal, announced today (December 9, 2025), lets Ghai walk away without admitting guilt, but it underscores SEBI's zero-tolerance stance on media mavens gaming the system with pre-air info. No bans or further penalties were imposed, but Ghai's got a clean-slate clause: SEBI can reopen the book if any fibs surface.
#### Case Breakdown
Here's the nitty-gritty, pieced from SEBI's probe into trades from January 2018 to January 2021:
| Aspect | Details |
|---------------------|---------|
| **Core Violation** | Ghai allegedly leaked unpublished, price-sensitive stock recommendations from his show to select contacts, who traded ahead (front-running) and pocketed unlawful gains. High correlation spotted between his on-air picks and suspicious trades in linked accounts. Breached SEBI's Prohibition of Fraudulent and Unfair Trade Practices Regulations, 2003. |
| **Timeline** | - **Investigation Period**: Jan 1, 2018–Jan 13, 2021.<br>- **Show-Cause Notice**: Issued Feb 24, 2025.<br>- **Settlement Push**: Ghai applied mid-proceedings; SEBI's Internal Committee greenlit Rs 1.45 Cr on June 24, 2025, after rejecting his lower calc.<br>- **Final Nod**: High Powered Advisory Committee approved Aug 7, 2025; effective immediately today. |
| **Settlement Amount** | Rs 1,45,60,000—covers disgorgement of gains (earlier pegged at Rs 6.15 Cr including interest) plus penalties, but dialed back via settlement. No admission/denial of findings. |
| **Related Parties** | Trades tied to Ghai's wife, Jaya Ghai, and mother, Shyam Mohini Ghai, per a 2021 SEBI scan. Broader network shared the tips further, amplifying the ripple. |
Ghai's show was a retail investor magnet, dishing BTST (Buy Today, Sell Tomorrow) calls that moved markets. But SEBI's lens revealed a darker side: "Certain persons traded on that early info and made unfair gains," as one X thread summed it up. The settlement? A pragmatic exit, but it echoes past crackdowns on TV tipsters blurring lines between advice and advantage.
#### Market & Social Echoes
This drops amid a jittery Indian market (Nifty down 0.2% today on global cues), spotlighting SEBI's war on front-running—over 50 cases settled in 2025 alone. On X, reactions are muted but pointed: Fans of the late Rakesh Jhunjhunwala's orbit revisited Ghai's 2021 "guilty" verdict (pre-settlement), while fintech handles spun it as a cautionary tale for retail punters: "TV tips too hot? They might cost ya." NDTV Profit broke it fast, racking views with a simple headline drop.
Bottom line: In the echo chamber of stock TV, trust but verify—your edge shouldn't come at someone else's expense. Ghai's off the hook, but the message lingers: Play fair, or pay up. If you're trading on tips, DYOR always.
