SEBI Penalizes Stock Manipulators: Three Individuals Fine Rs 20 Lakhs Over AIPL Telegram Pump-and-Dump Scheme

SEBI Penalizes Stock Manipulators: Three Individuals Fine Rs 20 Lakhs Over AIPL Telegram Pump-and-Dump Scheme​

SEBI Adjudicates Market Manipulation in Akash Infra-Projects Limited Scrip​

Securities and Exchange Board of India (SEBI) has issued a decisive adjudication order, imposing a substantial penalty on three individuals for involvement in the orchestrated market manipulation surrounding Akash Infra-Projects Limited (AIPL). The findings confirm that these individuals engaged in a coordinated scheme to disseminate misleading stock recommendations via Telegram channels.

The Adjudicating Officer determined that the actions violated multiple provisions of the SEBI Act, 1992, and the PFUTP Regulations, 2003. This market manipulation campaign was conducted during the period spanning November 01, 2021, to July 01, 2022.

Orchestrated Misinformation Campaign via Telegram Channels​

The investigation revealed that a concerted effort was undertaken by Noticees 6 (Amesh Surajlal Jaiswal), 7 (Jalaj Agrawal), and 8 (Arvind Shukla). These individuals were found to have operated or controlled various public-facing Telegram channels. These channels served as the primary platform for circulating buy recommendations concerning AIPL shares.

The 'Telegram recommendation phase,' which ran from February 11, 2022, to February 18, 2022, saw stock tips posted across several high-subscriberage digital platforms. These communications included phrases like "UPERRCURCIT IN (AKASH)" and promises of a "40% return in 7 days."

SEBI Findings on Market Impact and Scheme Execution​

SEBI's inquiry concluded that the dissemination of these specific recommendations was deliberately designed to mislead retail investors into purchasing AIPL shares. This constitutes an unfair trade practice under regulations. Noticee 8, for instance, was found to be the administrator of key Telegram channels, which were operated through a mobile number belonging to him.

Analysis of the market data showed that the stock price and trading volume experienced significant increases on the days when the recommendations were posted. Specifically, the close price rose by 5.21% during the period from February 01, 2022, to February 18, 2022 (from Rs 191.8/- to Rs 201.8/).

Meanwhile, the investigation also noted that Net Sellers, namely Noticees 10, 11, and 12, managed to sell their holdings during this short period. These sellers reportedly made unlawful gains amounting to Rs 11,93,708/- (approximately Rs 11.94 lakh).

Penalty Imposed on Manipulators​

Based on the established violations of SEBI Act provisions, the Adjudicating Officer imposed a penalty on Noticees 6, 7, and 8. These three individuals were found jointly and severally liable for the coordinated manipulative scheme executed via social media platforms.

The penalty amount set by SEBI is Rs 20,00,000/ (Rs Twenty Lakhs Only). This figure was deemed commensurate with the gravity of the violation involving fraudulent and unfair trade practices in the securities market.

Noticees 6, 7, and 8 are required to remit this penalty amount within 45 days of receiving the order through SEBI's designated payment portal. Failure to comply could lead to consequential recovery proceedings under applicable SEBI regulations.