Sebi Cracks Down on Stock Manipulation Ring

Sebi has barred 15 individuals for three years from securities markets and imposed penalties totaling Rs 3.6 crore. This action is in response to the manipulation of Unison Metals shares through misleading stock recommendations via Telegram channels. An unlawful gain of Rs 3.87 crore is to be disgorged.

The Securities and Exchange Board of India (Sebi) has taken decisive action against 15 individuals, barring them from participating in securities markets for three years. This move comes with a significant financial repercussion, as Sebi has imposed penalties totaling Rs 3.6 crore on those found guilty of manipulating Unison Metals shares through misleading stock recommendations shared on Telegram channels.

Additionally, Sebi has ordered 10 individuals among the accused to return an unlawful gain exceeding Rs 3.87 crore, which they secured through these manipulative practices. This amount is to be credited to the Sebi's Investor Protection and Education Fund within a 45-day period. The accusations center around the orchestrated scheme led by Yayaati Hasmukhray Nada and several associates, who are said to have misrepresented stock information to influence trading for personal profit.

The regulatory body identified several accomplices in this scheme, who not only shared these misleading recommendations but were also pivotal in executing the 'pump and dump' operations via social media. Key figures like Jalaj Agrawal and Arvind Shukla were noted as repeat offenders, with Sebi cracking down on their tactics to protect investors and maintain market integrity.

(With inputs from agencies.)