Sebi bars 6 for pedlling ‘buy’ messages on Telegram

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Six individuals were barred by Securities and Exchange Board of India (Sebi) Wednesday from the market for up to three years and imposed penalty of Rs 5.8 crore for circulating misleading ‘buy’ messages on social media platform Telegram.

The fine needs to be paid within 45 days. Sebi has also asked them to disgorge gains of Rs 1.85 crore made by them. The six are — Himanshu Mahendrabhai Patel, Raj Mahendrabhai Patel, Jaydev Zala , Mahendrabhai Bechardas Patel  , Kokilaben Mahendrabhai Patel  and Avaniben Kirankumar Patel.

Sebi said Himanshu, Raj and Jaydev were the administrators of a Telegram channel named —  @bullrun2017 (Bull Run Investment Educational Channel)– which had more than 49,000 subscribers, and were engaged in dissemination of false and misleading messages recommending specific stocks. Further, the trio purchased specific stocks using their own trading accounts as well as the trading accounts of Mahendrabhai Bechardas , Kokilaben and Avaniben and then circulated buy recommendation messages for those specific stocks on the Telegram channel, without disclosing their own interest and intent to sell the stocks instead.

Later, going against their own recommendations, they sold their stocks at inflated prices to investors who had followed their advice.

Through such acts, they have made illegal gains of Rs 2.84 crore. Sebi said they have already deposited Rs 98.84 lakh in an escrow account.

Now, Sebi has directed them to  disgorge the remaining Rs 1.85 crore, along with simple interest of 12% per annum. Thus, all the noticees have played their respective roles, which have been found to be a part of a scheme in violation of Sebi Act and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices)  Regulation, Sebi added. (With inputs from PTI)