sebi:WTM/AN/ISD/ISD-SEC-1/29722/2023-24
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Facts / Headnote
Interim Order dated March 02, 2023 confirmed with modifications: restraint narrowed to dealing in scrip of Sadhna (except Noticee no. 19), impounding continued on individual basis with revocation for Noticee nos. 10, 15, 21 and 31, with limited permissions for sale into escrow and medical withdrawals.
Provisions invoked
- s. 11B
- s. 11
- s. 11(4)
- s. 19
- s. 17
- s. 14
- s. 238
- s. 26A
Regulations
- Reg. 4(1)
- Reg. 2
- Reg. 3(1)
Holding
The prima facie pump-and-dump scheme in Sadhna Broadcast Limited via misleading YouTube recommendations is maintained, and the Interim Order dated March 02, 2023 read with Confirmatory Order dated July 20, 2023 is confirmed subject to modifications on scope of restraint and individual impounding liability.
Full text
Confirmatory Order in the matter of Stock Recommendations using YouTube in the scrip of Sadhna Broadcast Limited Page 2 of 125 S. No. Name of the Noticee PAN
Confirmatory Order in the matter of Stock Recommendations using YouTube in the scrip of Sadhna Broadcast Limited Page 3 of 125 and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”).
Confirmatory Order in the matter of Stock Recommendations using YouTube in the scrip of Sadhna Broadcast Limited Page 4 of 125 offloaded a significant part of their holdings at inflated prices and booked profits. 2.5. The Noticees in this case were broadly classified as follows - the creator of both the YouTube Channels was classified as Misleading Message Disseminator (“MMD”). Some of the Noticees were Net Sellers/ Promoters and profit makers (“NSs”), i.e., persons who held shares of Sadhna at the start of the examination period either as a promoter or as a shareholder, and who traded in and net sold shares during the said period. Other Noticees were Volume Creators (“VCs”), or persons, outside of those classified as NSs, who both bought and sold shares of Sadhna during the examination period, hence contributing to a rise in trading volumes and interest in the scrip. Two of the Noticees were classified as Information Carriers (“ICs”). Connection between all the Noticees across the MMDs, NSs, VCs and ICs has been established based on several facts on record including familial relationships, KYC details, common address & email IDs, call data records and fund transfers. 2.6. Prima facie, across the MMDs, NSs, VCs and ICs, the Noticees orchestrated an egregious case of ‘pump-and-dump’ of Sadhna Broadcast Ltd. – i.e., they collectively helped create trading volumes and interest in the scrip, spread patently false and misleading YouTube videos about the scrip, and hence induced un
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Source: SecMarx — sebi:WTM/AN/ISD/ISD-SEC-1/29722/2023-24. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.