Sebi slaps Rs 2.8 crore fine on RGRL manipulators

Metro India News | NEW DELHI :

The Securities and Exchange Board of India (Sebi) has imposed penalties totaling Rs 2.8 crore on 18 entities and barred them from participating in securities markets for up to five years for manipulating the share prices of Retro Green Revolution Ltd (RGRL).

Fifteen of these entities have also been directed to return unlawful gains of Rs 2.94 crore along with 12 per cent annual interest from December 31, 2021, until the date of payment. The amount is to be deposited into Sebi's Investor Protection and Education Fund within 45 days.

In its 61-page order, Sebi found that the entities were involved in a premeditated scheme to artificially inflate the price of the illiquid RGRL stock and attract unsuspecting investors. The manipulation included coordinated trading among connected entities to create artificial volumes and the circulation of tips and stock recommendations through a Telegram channel.

Noticees 1 to 6, including Sanjay Arunkumar Choksi, were found to have created a misleading appearance of trading and manipulated the share price. Sebi noted that although Choksi was no longer the promoter, he continued to control the company, receiving all statutory payments from his account. Sebi observed that Choksi exploited his influence for personal gain, and the rise in trading volumes, coupled with Telegram recommendations, misled investors.

The regulator concluded that the 18 entities violated market norms by enabling the offloading of illiquid shares to the public, earning unlawful gains of over Rs 2.94 crore. The monetary penalties imposed on the entities ranged from Rs 5 lakh to Rs 50 lakh.

The investigation, covering September 1, 2020, to December 31, 2021, examined trading activities in RGRL and alleged dissemination of stock tips through Telegram. Following the probe, Sebi issued a show cause notice on November 8, 2024, before passing the final order. This action is part of Sebi’s ongoing efforts to enforce fair practices and deter market manipulation in illiquid stocks.