Sebi Slaps Rs 50 Lakh Fine for Fraudulent Share Manipulation

The Securities and Exchange Board of India (Sebi) imposed a Rs 50 lakh penalty on four individuals for manipulating shares of G G Engineering Ltd with fraudulent practices, including misleading videos and order spoofing. Sebi also fined other entities for non-genuine trading in illiquid stock options.

Sebi, the capital markets regulator, has levied a Rs 50 lakh fine on four individuals for manipulating the shares of G G Engineering Ltd. The involved parties, Manish Mishra, Sunil Bhandari, Rekha Bhandari, and Anshu Mishra, were found guilty of engaging in fraudulent practices.

The manipulation involved uploading misleading videos on YouTube to spur investor interest in GG Engineering's securities. According to Sebi's Adjudicating Officer Amit Kapoor, the scheme included creating artificial trading volumes and order spoofing.

The discovery came following an investigation into the activities around GG Engineering Ltd's shares. Additionally, Sebi identified malpractice in the BSE's stock options segment, fining various entities for contributing to artificial trading volumes through reversal of trades.