The Securities and Exchange Board of India has barred 24 entities from the stock market for manipulating stocks in collusion with YouTube creators.
In its interim order, the market regulator has found certain net-sellers, profit-makers, and volume creators colluding with the creators of Youtube channels, Midcap Calls and Profit Yatra, to generate artificial volumes in the Sharpline Broadcast Ltd. scrip.
SEBI took action in response to multiple complaints that false content was being posted on these channels as part of a marketing campaign to trick innocent investors, which led to false volumes in the scrip of Sharpline from April to August 2022.
According to SEBI, certain shareholders used this period to book massive profits. This is in violation of the SEBI Act and Unfair Trade Practice Regulations mandated by SEBI. According to SEBI, the viewership of both of these channels was high enough to pull off the manipulation.
Similar manipulation was also found in the scrips of Sadhna Broadcast Ltd. It's alleged that Youtube channels "The Advisor" and "Moneywise" peddled false news to artificially inflate the volumes. All 31 entities involved in the manipulation are barred from the securities market.
Entities are also advised to deposit the illegal gains booked during the period into an escrow account established for the purpose.
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