Well, allegedly, these entities are allowed to circulate “recommendations to buy” in the scenario of these companies through SMS, text messages, websites for investors, etc. to a rapid increase in price and volume in corporate scripts.
Not only that, SEBI also issued a fine of Rs 126 million against these units. SEBI is interested in taking disciplinary action against influential individuals and entities involved in the manipulation of the stock prices of companies by providing recommendations to investors on a variety of media channels. social media.
Mass SMS Scam – EXPLAINED
The market regulator has initiated an investigation into the securities trading of small companies, namely 7NR Retail lTD., GBL Industries Ltd., Mauria Udyog Ltd., Vishal Fabrics Ltd. and Darjeeling Ropeway Company Ltd. The investigation into these five small-cap companies ended after their trading volume and share price surged surprisingly.
SEBI found during the investigation that there must be some strong similarities in this five-script trading model. One similarity is that the “recommended buy” for all 5 scripts are mostly circulated via bulk SMS. Several sites are also used to suggest purchases in all five versions, with the exception of Vishal Fabrics Ltd.
Also, another observation is that the SMS circulation period is consistent with the increase in the company’s stock price and volume. However, it is worth noting that in the Darjeeling cable car situation, the rate of price increase is still under control and the volume is only increasing. This is due to some specific monitoring actions that the exchange imposes on the script.
During its investigation, SEBI found that several identified entities were accused of engaging in various scams that resulted in an unusual increase in the price and volume of the shares of the five companies mentioned above. .
The regulator noted that a total of 135 entities were actually involved in stock manipulation. These companies have illegally earned Rs 126 million by engaging in illegal activities. SEBI subsequently banned these entities from accessing the stock market.
Not to be missed, the market regulator issued a notice of visibility for 226 entities, including multiple la accounts. It also hints at the possibility of needing to disburse a total of Rs 143.79 crore from 226 entities.
Categories: Optical Illusion
Source: newstars.edu.vn