In a significant move to curb fraudulent practices in the stock market, the Securities and Exchange Board of India (Sebi) has imposed a penalty of ₹50 lakh on four individuals for manipulating the shares of GG Engineering Ltd.
What Happened?
The individuals, Manish Mishra, Sunil Bhandari, Rekha Bhandari, and Anshu Mishra, were found to have engaged in a coordinated scheme to induce investors to acquire securities of GG Engineering through uploading false and misleading videos on YouTube channels.
Sebi's Findings
According to Sebi's order, the individuals created artificial volumes in the scrip of GG Engineering and indulged in order spoofing, leading to the creation of a misleading appearance of trading in the shares. The order also stated that the individuals violated the provisions of the Prohibition of Fraudulent Trade Practices (PFUTP) rules.
Investigation Details
During the investigation, it was discovered that two YouTube channels, Profit Yatra and Midcap Calls, had posted fake and misleading videos claiming that the company had secured a 600-crore order from the West Bengal Government. Following the release of the videos, trading volumes of GG Engineering increased, and selling activity began after the videos were uploaded.
- The individuals were found to have uploaded false and misleading videos on YouTube channels.
- The videos claimed that the company had secured a 600-crore order from the West Bengal Government.
- Trading volumes of GG Engineering increased after the videos were uploaded.
What It Means for Investors
The Sebi order serves as a reminder to investors to be cautious of fake and misleading information on social media and other online platforms. It also highlights the importance of verifying information through credible sources before making investment decisions.
Remember, this is a regulatory action, not an investment advice. Do your own research and consult with a financial advisor before making any investment decisions.