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New Delhi: Markets regulator Sebi on Tuesday barred two entities, Hanif Kasambhai Shekh and Robert Resources Ltd, for one year for indulging in manipulative trading activities through a Telegram channel that was used to give stock-specific recommendations to subscribers.
The regulator also directed Shekh and Robert Resources Ltd (RRL) to jointly and severally, disgorge the total unlawful gains of Rs 28.80 lakh along with 12 per cent interest per annum from February 18, 2022, till the date of the last fraudulent trade.
The order came after Sebi conducted an investigation in the matter of suspected pump and dump of stocks using a Telegram channel named 'Safebulls' based on a complaint dated September 30, 2021.
The complaint alleged that the administrators of the said channel were doing a scam by pumping many junk stocks and dumping the same to retail investors.
The period of investigation was from January 2021 to March 2022, to ascertain whether'Safebulls' was engaged in activities in contravention of the provisions of PFUTP norms.
In its 26-page order, Sebi's Chief General Manager Anitha Anoop said, 'I note that the Noticee 1 (Hanif Kasambhai Shekh) engaged in dissemination of manipulative messages recommending buying specific stocks on the Telegram channel and the trading account of Noticee 2 (RRL) was used to book profits from the resulting impact on price and volume of the recommended scrip.' Further, Robert Resources is a company where Shekh was the MD and authorised signatory of RRL during the investigation period, it is one and the same thing whether trading is done in the account of Noticee 1 or 2.
Thus, both the Noticees are part of this scheme which has been found to be in violation of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) rules.
The noticees made a wrongful gain of Rs 28.80 lakh through such activities.
'I observe that the Noticees 1 (Shekh) and 2 (RRL), by employing a manipulative scheme, have acted fraudulently and have violated the PFUTP regulations that prohibit manipulative, deceptive or fraudulent schemes/practices when dealing in securities,' Anoop said.
Accordingly, Sebi slapped a penalty of Rs 5 lakh on both Shekh and Robert Resources Ltd. The penalty is payable jointly and severally.