Two businesses are banned by SEBI for providing illegal stock advice on Telegram, and each is fined Rs 5 lakh

News on the SEBI market ban: Robert Resources Ltd. and Hanif Kasambhai Shekh have been placed under severe supervision by SEBI, India’s market regulator, and are not permitted to participate in the markets for a year. This verdict is the result of their engagement in manipulative trading via the provision of subscribers with stock-specific advice via a Telegram channel.

Furthermore, Shekh and Robert Resources Ltd. (RRL) have been ordered by SEBI to jointly and severally disgorge the whole illegal profits of Rs 28.80 lakh plus 12 percent interest annually, starting on February 18, 2022, and ending on the day of the final fraudulent deal.

The regulatory action resulted from a September 30, 2021, complaint that prompted SEBI to launch an inquiry into possible pump-and-dump schemes involving stocks advertised via the “Safebulls” Telegram channel.

The administrators of the “Safebulls” channel were accused in the complaint of engaging in fraudulent activity by raising the prices of different stocks and then selling them to gullible retail investors.

‘Safebulls’ may have breached SEBI’s Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) standards. That was the goal of the inquiry, which took place between January 2021 and March 2022.

SEBI’s Chief General Manager, Anitha Anoop, emphasized in a lengthy 26-page order: “I note that Noticee 1 (Hanif Kasambhai Shekh) engaged in the 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.” She went on to say that both organizations were part of the plan that was discovered to be against PFUTP regulations.

The notices’ illegal acts resulted in unjust earnings totaling Rs 28.80 lakh.

“I observe that Notices 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,” said Anoop.

As a result, Robert Resources Ltd. and Shekh have each been fined Rs 5 lakh by SEBI. The fine must be paid in full, jointly and severally.

This regulatory action serves as a message to anyone involved in illegal acts aimed at manipulating stock prices and deceiving investors, and it highlights SEBI’s commitment to upholding the integrity and fairness of India’s financial markets.