As many as 24 entities have been barred from the stock market by The Securities and Exchange Board of India(SEBI) for manipulating the stocks by colluding with the YouTube creators.
24 Entities Barred By SEBI For Manipulation Through Youtube
The market regulator, SEBI, in it’s interim order 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.
There were multiple complaints that as a part PF the marketing campaign, false content was posted by these channels to trick innocent investors into certain instruments leading to false volumes in the scrip of Sharpline from April to August 2022.
SEBI has decided to take action against certain shareholders that did this in order to book massive profits.
As per SEBI, this act is in violation of the SEBI Act and Unfair Trade Practice Regulations mandated by the regulator.
High Viewership Channels Made It easy to Trick People
As per the regulator, the raison d’être why this could be pulled off was the kind of viewership that these channels had, which was high enough to pull off the manipulation.
Similar trickery was also pulled off by Sadhna Broadcast Ltd as the alleged Youtube channels “The Advisor” and “Moneywise” peddled false news to artificially inflate the volumes.
SEBI has thus barred all 31 entities from the securities market due to the manipulation.
It has been advised to these entities which made the illegal profits to deposit the illegal gains booked during the period into an escrow account established for the purpose.
Established on 12 April 1988 as executive body, under the ownership of Ministry of Finance within the Government of India, the Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India.
On 30 January 1992 through the SEBI Act, 1992, it was given statutory powers through the SEBI Act.
