InvestorQ : Yesterday I saw that a popular CNBC anchor Pradeep Pandya and an analyst were banned from trading by SEBI for front running? What is this front running and is it illegal?
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Yesterday I saw that a popular CNBC anchor Pradeep Pandya and an analyst were banned from trading by SEBI for front running? What is this front running and is it illegal?

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diksha shah answered.
2 months ago
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This is an ex-parte order passed by SEBI against CNBC Awaaz Anchor, Pradeep Pandya, and trader and analyst Alpesh Furiya and family. Based on the study of trading patterns and call giving patterns of the anchor and the trader, SEBI has identified a clear causal link. Apparently, Pradeep Pandya would give calls on live TV once the trade was taken by the Alpesh Furiya circle and the call on CNBC would take the stock price higher.

This would enable them to come out at a quick profit. This is called front running because here the broker and persons in the media use the public faith and trust in analysts and anchors to make a quick profit. This is ethically wrong and also against the code of conduct recommended by SEBI for the analysts and media anchors. This is the second case of such front running in CNBC Awaaz, the previous being Hemant Ghai, another star anchor.

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