SEBI Cracks Down on Share Manipulation: Penalties Imposed on 18 Entities

SEBI has imposed penalties amounting to Rs 2.8 crore on 18 entities and barred them from securities markets for up to five years for manipulating share prices of Retro Green Revolution Ltd. The entities are directed to disgorge unlawful gains and recover interest for manipulation involving artificial trading and stock recommendations.

The Securities and Exchange Board of India (SEBI) has levied a total of Rs 2.8 crore in penalties on 18 entities involved in manipulating the share prices of Retro Green Revolution Ltd (RGRL). This decisive action also includes barring these entities from the securities markets for up to five years.

The investigation uncovered that these entities executed a premeditated scheme to artificially inflate the price of RGRL's illiquid shares. The manipulation involved coordinated trading among connected parties and disseminating stock tips via a Telegram channel, strategically designed to lure unsuspecting investors.

Sebi's order, issued on Tuesday, highlighted that the Choksi Group, fronted by Sanjay Choksi, played a central role in these activities. Despite not being the promoter of RGRL, Choksi exerted control through his financial influence. The entities have been ordered to return unlawful gains of Rs 2.94 crore plus interest and deposit the amount into Sebi's Investor Protection and Education Fund within 45 days.

(With inputs from agencies.)