The recent five-year market ban imposed by the Securities and Exchange Board of India (SEBI) on former CNBC Awaaz anchor Hemant Ghai, along with his wife Jaya and mother Shyam Mohini Ghai, has cast a spotlight on the ethical breaches among financial market experts. Ghai was guilty of using his privileged status to perpetrate fraud in trading practices, urging the buying of stocks on his show that he had bought the day before, manipulating stock prices and earning illegal profits.
This incident highlights a disturbing trend in which respected market authorities abuse their influence for personal gain. These acts not only violate investor trust but also destabilize market integrity.
Other Significant Instances of Market Manipulation by Professionals:
Zee Business Guest Experts’ Manipulation (2023): In a notable case, five guest experts appearing on Zee Business were held guilty by SEBI for price manipulation of stocks and engaging in fraud. They used their on-screen presence to corner the market in stocks, pocketing enormous unlawful profits.
Front-Running Charges against Ketan Parekh (2025): Former stockbroker Ketan Parekh, prohibited previously for cornering the stock market, has been charged by SEBI for front-running from January 2021 to June 2023.Parekh and his acquaintances are said to have used insider information of a foreign company to earn crores of illegal profits.
Misleading Investment Advisory by Asmita Patel (2025): SEBI debarred six individuals, including Asmita Patel, from conducting misleading investment advisory operations. They were “finfluencers” who utilized social media platforms to offer unregistered investment advice, resulting in extensive investor loss.
These examples point towards weaknesses in the financial advisory network, highlighting the necessity for:
Increased Regulatory Monitoring: Strengthening monitoring mechanisms to recognize and avert unethical conduct by market experts.
Investor Education: Providing investors with information to be able to critically assess advice and detect potential conflicts of interest.
Ethical Standards: Establishing and implementing strict ethical standards for financial planners and media figures to maintain market integrity.
The usual trend in such cases is the abuse of trust and authority by the individuals placed in positions of market knowledge. These failures not only damage individual investors but have also ramifications for confidence in the financial system as a whole. It is thus critical that there is collective effort between regulatory bodies, the media, and investors themselves to build an open and fair market culture.
