In a crackdown against unregulated stock recommendations through social media, Sebi has cracked the whip on multiple entities who allegedly ran a nexus to inflate share prices of two connected firms — Sadhna Broadcast and Sharpline Broadcast — by providing misleading information on two YouTube channels.
A notable name was that of actor Arshad Warsi, along with his wife Maria Goretti-Warsi, who allegedly profited close to Rs 30 lakh and Rs 38 lakh, respectively.
The markets regulator passed an interim order, barring 31 entities in the case of Sadhna and 24 in the case of Sharpline, directing them to disgorge wrongful gains amounting to Rs 42 crore and Rs 12 crore, respectively.
The order names Manish Mishra and Manjari Tiwari as creators of YouTube channels “MidCap Calls” and “Profit Yatra”, which peddled false information enticing investors to buy shares of Sharpline for “extraordinary” profits.
These videos were amplified by way of paid promotions and garnered a huge subscriber base. Subsequently, some non-promoter shareholders with the holding of more than 1% offloaded their stakes for humongous profits.
Sebi observed that the number of small shareholders with share capital of up to Rs 200,000 increased from 571 (or 0.67%) to 20,009 (or 41.89%) between March 31 and June 30, 2022. At the same time, the number of shareholders holding capital in excess of Rs 200,000 decreased from 25 (holding 48.88%), as on March 31, 2022, to 10 (holding 14.14%) as on June 30, 2022.
It further observed that the share prices jumped 529% from April 19 to June 13, with the traded volume spiking 5,408%.
Similarly, in the case of Sadhna, two YouTube channels created by Manish Mishra, “The Advisor” and “Moneywise” peddled misleading information, leading to a spurt in share prices. Key management personnel and shareholders holding more than 1% offloaded their stakes in the case as well, raking in inflated profits.
In this case, the number of small shareholders with share capital of up to Rs 200,000 increased from 2,167 (or 3.53%) to 55,343 (or 25.42%) between June 30 and September 30 last year. The number of shareholders holding capital in excess of Rs 200,000 decreased from 22 (holding 37.67%) to 14 (holding 25.27%).
Between April 26 and August 12, share prices zoomed 1,103% without split adjustment.
Besides barring the noticees from accessing the capital markets and directing them to disgorge the ill-gotten wealth, Sebi has also instructed them to disclose their inventory of assets, barred sale or redemption of MF units and directed them to square off open positions in exchange-traded derivative contracts within three months.
The noticees have been granted 21 days to reply to the charges.
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