SEBI recently shared an interim order against the company “Sadhna Broadcast ltd” for using Youtube channels for manipulating stock prices.
If you remember, I had shared about this company here as well.
Promoters and insiders in the company basically used these channels to artificially pump up the prices and dumped the shares once the pump was done.
The person who owned these Youtube channels transferred 65 lakhs to Google for advertising and while sharing buy recommendations with false information on Youtube from July to September, he and other insiders of the company repeately offloaded their shares to other investors who were buying based on these videos.
Timeline of events
Check the profits these people made.
Youtube channels “ The Advisor” and “Moneywise” which had lakhs of subscribers did paid advertisement and promotions sharing false information and news pumping up the stock price and once the pump is done, these stocks were deleted by them. This pattern kept on repeating for not just this stock but other stocks as well.
The promoters of this company Sadhna broadcast were directly involved in this activity using their relatives and linked companies.
I feel these things will never stop, with so many messages and campaign run by regulators still people will get duped. There are people giving there trading account details and credentials to unknown and getting ripped off there life earnings! Lot of good videos published by sensibul and even nudge by Z, still people fall for it .
I guess two reason for it:
People feel nothing bad can happen to him as he is special and got golden laying egg ,life changing lottery.
India is huge market where dreams and fear are sold and bought at large quantity. Unless there change in culture and due diligence these scams will continue
Is it only for the ones who give calls on YouTube? What about the ones who run unregistered stock market institutions? That too the self claimed BEST stock market institution in India.
We have more such institutes than the number of successful traders.
Why people never go to jail for these things, worst case seems to be give money back + banned from market for small time. So risk is low and if not caught, money in pocket.
He and his wife will not be allowed to trade/invest. But this is an interim order. So it will be known later if the ban will stay and if it is temporary or permanent.
Is just a ban & fine enough? Why not cancel the trades and give money back to the investors from the day this started till it was caught? Can someone from ZERODHA please reply? If this is possible why SEBI does not do this? If it’s not possible may we know the reason, please?
And one more - I read the order and it seems the management of the company was also involved in this pump-and-dump scheme. Isn’t this outright insider trading? Why then Sadhna Broadcast Ltd. is still trading? Should this not be taken out from the markets?
atleast some money can be recovered and subscriberes can be taken over