Breach Of Trust

Sebi has issued directions to Mathew Easow, Chairman of Mathew Easow Research Securities Limited, in the matter of stock recommendations given by him on moneycontrol.com in certain shares and the dealing in those shares by Mathew Easow and his associate entities.

Sebi has issued directions to Mathew Easow, Chairman of Mathew Easow Research Securities Limited, in the matter of stock recommendations given by him on moneycontrol.com in certain shares and the dealing in those shares by Mathew Easow and his associate entities.

As a part of ongoing analysis, Sebi found that the recommendations given by Mathew Easow, when compared with the trading pattern of his associate companies - Mathew Easow Research Securities Limited and Mathew Easow Fiscal Services Limited clearly indicated that Mathew Easow took an opposite trading position in the scrips of Kalpana Industries Ltd, CESC Ltd, Ahlcon Parenterals India Ltd and Albert David Ltd. Easow had recommended these stocks to investors at large, but he had also started selling the stock after giving an opposite advice to the market.

The Sebi release says, "This indicates an obvious attempt to mislead the investors through investment recommendations, in a striking posture of ambivalence coupled with interest. It was apparent that Mathew Easow was purveying information to the public, which he himself did not appear to believe to be true to make unfair gain for himself at the cost of lay investors."

The act of Mathew Easow and his associate entities is in violation of Regulation 4(2) (f) of Sebi Regulations, 2003 (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market). Sebi has cautioned investors to take informed decisions without being influenced by such recommendations given in the public media.

Sebi has directed Mathew Easow to cease and desist from giving any recommendations about any investment in the securities market in any public media, which amounts to violation of regulation 4(2)(f) of the Sebi Regulations, 2003. (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market). Further, Sebi has asked Mathew Easow Fiscal Services Limited to cease and desist from committing any violation of clause B(7A) of the Code of Conduct for Stock Brokers laid down in Schedule II, read with regulation 7 of the Sebi (Stock Brokers and Sub-brokers) Regulations, 1992.

Also, Sebi has asked Mathew Easow Financial Services to cease and desist from committing any violation of clause B(7A) of the Code of Conduct for Sub-brokers laid down in Schedule III read with regulation 15 of the Sebi Regulations, 1992. (Stock Brokers and Sub-brokers) .

Sebi has also asked moneycontrol.com being a website with wide reach, to ensure that persons with proven credentials of giving fair and truthful information and analysis alone, are allowed to give advice on the portal so that the portal is not misused by persons giving advice purely on considerations of personal gains.