 "Sebi cracks whip in Superior Finlease stock price manipulation case")
The Securities and Exchange Board of India (Sebi) has barred 17 entities and individuals from the securities market for five years and two others for three years each for allegedly operating a pump and dump scheme in Superior Finlease through misleading recommendations through Telegram Channels.
The markets regulator has imposed a penalty of ₹5 crore on Rajneesh Kumar, a director in the company and levied a penalty of ₹2 crore each on two operators of the scheme, and ₹2.9 crore on 16 others, separately.
“This order serves as a message that such manipulative practices by interested parties will be met with appropriate action. Investors are urged to exercise due diligence and caution, especially while investing in companies which see sudden spikes in prices without any attributable change in fundamentals,” Ashwani Bhatia, wholetime member of Sebi, wrote in the order.
A pump and dump scheme refers to inflation of price of a stock through manipulative trades.
Sebi bars 17 entities and individuals from securities market for five years.