SEBI Action on Stock Tips: What Happened and Why It Matters
The SEBI action on stock tips has raised serious questions about misuse of TV platforms. In a high-profile probe, SEBI alleged that guest experts on Zee Business shared stock tips privately before appearing on air. This allowed connected entities to trade and profit—before the general public even heard the recommendation.
The incident shows how tip-offs can distort the market, mislead investors, and breach insider trading norms.
What Did SEBI Find?
On 28 July 2025, SEBI passed an order involving:
- 13 entities linked to guest experts
- ₹7.41 crore in wrongful gains
- Front-running of televised stock tips
- Settlement by 10 entities, including a Zee Business anchor
- 4 individuals barred from market access
- 1 cleared of charges
Guest experts were found giving advance stock recommendations to “connected traders.” These traders would buy or sell in anticipation of the on-air tip, creating a deceptive spike or drop.
Legal Basis of SEBI Action
The action is based on violations under:
- Regulation 4(2)(k) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices), 2003
- Section 15HA of the SEBI Act, 1992
- SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/63 dated May 23, 2023
(which regulates influencers and public communication in securities markets)
SEBI treated the advance stock tips as fraudulent trade practices and market manipulation, even if the trading was by third parties.
How It Impacts Market Participants
This is not just a media scandal — it’s a compliance warning for:
1. Guest Experts & Analysts
- Cannot leak stock calls or tips before going public
- Must disclose conflicts of interest
- Must maintain records of communication
2. News Channels & Anchors
- Must conduct due diligence on guest experts
- Should not act on or circulate unpublished recommendations
- Can be held liable if found facilitating manipulative practices
3. Retail Investors
- Don’t blindly follow TV tips — they may already be “priced in”
- Look for disclosure disclaimers
- Consider the timing and source of every recommendation
Expert View: Don’t Trust the Hype
According to market experts, this case highlights a critical investor mistake: reacting to media tips without context.
“By the time it’s on TV, smart money has already moved. Always research the fundamentals and check if the stock already rallied before the tip,” says a SEBI-registered advisor.
SEBI’s Bigger Push: Regulation of Finfluencers & Tipsters
This case builds on SEBI’s 2023 crackdown on unregistered finfluencers. The regulator wants to ensure:
- Only registered analysts or intermediaries give public recommendations
- Every media channel and platform follows audit trails and communication protocols
- Investors get fair and equal access to information
This is part of SEBI’s broader mission to prevent “pump and dump” scams in the digital age.
What Investors Should Do
✔ Verify tips from SEBI-registered sources
✔ Track suspicious price movements before news breaks
✔ Avoid acting purely on TV or social media tips
✔ Stay updated on SEBI guidelines at www.sebi.gov.in
Summary
SEBI action on stock tips revealed how Zee Business guest experts allegedly leaked stock calls before airing. Learn how SEBI settled with 10 entities, barred 4, and reinforced strict rules on analyst disclosures and investor protection.
FAQs
1. Is it illegal to share stock tips before a broadcast?
Yes. Sharing unpublished tips that affect stock prices can amount to market manipulation under SEBI’s PFUTP regulations.
2. What is front-running in the stock market?
Front-running is when someone trades based on advance non-public information, gaining unfairly before others.
3. Are TV analysts regulated by SEBI?
Yes, they must register under Research Analyst Regulations if they provide stock recommendations.
4. Where can I verify if someone is a SEBI-registered analyst?
You can check on the SEBI Intermediary portal: https://intermediary.sebi.gov.in