SEBI tightens its grip on stock price manipulation, takes strict action against 135 institutions
Market regulator SEBI has tightened its noose while taking action against 135 institutions making high profits by manipulating share prices. SEBI has barred these institutions from market access and has also directed the forfeiture of ill-gotten gains made by them. SEBI said that the manipulator had manipulated the shares of five small-cap companies.
Markets regulator SEBI today took action against those manipulating share prices. SEBI said it has taken action against 135 entities involved in manipulating the share prices of five small-cap companies by circulating bulk SMS with "buy" recommendations to public investors.
Markets regulator Sebi said these 135 entities have been barred from accessing the securities market till further instructions and have also issued orders to confiscate Rs 126 crore misappropriated by these entities by manipulating the market.
The names of the five small-cap companies with whom SEBI has made allegations of manipulation are Mauria Udyog Ltd, 7NR Retail Ltd, Darjeeling Ropeway Company Ltd, GBL Industries Ltd, and Vishal Fabrics Ltd.
Sebi said that as per the first phase of the scheme, price volume influencers through manipulation increased the price and quantity of five stocks, followed by prima facie buying through bulk SMS in five stocks by SMS sender Hanif. Messages were sent with the recommendations of
Thereafter, in the final stage, the off-loader investors sold the shares of these five companies (acquired by them earlier) at a higher price, making huge profits, and through multiple layers, this money was distributed to all those involved in the manipulation. Who calls himself the promoter of the company.
After this action, the market regulator SEBI cautioned the people to avoid such fraudulent activities being done through SMS, various websites, and social media like Telegram, Instagram, and YouTube. SEBI said that investors should deal only with SEBI-registered intermediaries.
