- Wealth PMS (50L+)
Today I saw CNBC and noted that Mr. Matthew Easow was giving “technical recommendations” on stocks and on the Nifty. From an investor’s standpoint: Should we Trust Matthew Easow?
SEBI had, in it’s order dated 19/01/2006, noted that Matthew Easow had given certain recommendations on moneycontrol.com and then, had done exactly the OPPOSITE for himself!
For instance, he recommended “Kalpana Industries” on September 13, 2005 at Rs. 78.9. He had bought a net of 28,644 shares of Kalpana Industries between 2nd and 12th September, 2005. Then, between 13th and 19th September 2005, Matthew Easow SOLD 25200 shares of this company!
Note: Kalpana Industries is now trading at around Rs. 40.5.
He has also done this with CESC, Ahlcon Parent, and Albert David Ltd.
SEBI then had ordered Matthew 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 (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003.
This means Matthew Easow is not allowed to give recommendations. See the SEBI Order and Press Release.
The order further says, “moneycontrol.com being a website with a wide reach, has a responsibility cast on them for exercising due care and diligence to ensure that persons with proven credentials of giving fair and truthful information and analysis alone are allowed to give advise on the portal so that the portal is not misused by persons giving advice purely on considerations of personal gains”
I hope that MoneyControl.com will remove Matthew Easow from it’s panel immediately, and not restore him until the order is taken back or rescinded.
Meanwhile, as investors, you must note that Mr. Easow’s recommendations may have an element of personal gain in them, and therefore, he is not to be trusted.