Rs 5.57 Crore Paid by Kiran Jadhav, Simi Bhaumik, and Others to Settle SEBI's Unlawful Gains Probe; Know When Their 6-Month Suspension Ends!

Read on to uncover the full story and its implications!

What is the Case About?

SEBI conducted an investigation into the trading activities of certain entities who allegedly:

1. Made profits by executing trades based on advance knowledge of stock recommendations from guest experts on Zee Business. These entities are referred to as Profit Makers.
2. Facilitated these trades by providing trading accounts or credentials to Profit Makers. These entities are called Enablers.
3. Were the Guest Experts themselves, who provided non-public stock recommendations to certain individuals before broadcasting them.

Key Allegations:

• Profit Makers traded stocks based on advance tips from Guest Experts.
• Enablers provided the infrastructure to facilitate these trades.
• Guest Experts misused their platform for personal or connected gains.

Settlement Process:

1. SEBI issued a Show Cause Notice (SCN) to 15 entities involved in this case.
2. The accused entities applied for a settlement under SEBI's regulations, agreeing to pay a settlement amount without admitting or denying the allegations.

Terms of the Settlement:

1. Settlement Amounts: Each applicant agreed to pay specific amounts (e.g., Rs 62.4 lakh for some). The total disgorgement (ill-gotten gains) amount of Rs 7.41 crore was already deposited.

2. Voluntary Debarment: All applicants agreed to refrain from trading in securities for 6 months.
3. Compliance: They committed to revised settlement terms, including adhering to regulations and maintaining transparency.

Approval and Implementation:

1. SEBI's Internal Committee (IC) and High Powered Advisory Committee (HPAC) approved the settlement terms.
2. SEBI verified the payment of settlement amounts.
3. The settlement order was passed on January 16, 2025, and the applicants are bound by its terms.

Conditions and Updates:

• No Further Action: SEBI will not take further enforcement actions for these violations unless:

The applicants violate the agreed terms.

False representations were made during settlement.

Discrepancies arise in the settlement process.

• Immediate Effect: The order became enforceable as of its date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Disclaimer: The article is for informational purposes only and not investment advice.