Market regulator, The Securities and Exchange Board of India (SEBI) has banned 31 entities from the stock market due to manipulation of stocks with YouTube creators.
In SEBI’s interim order, it has identified a few net-sellers, profit-makers, and volume creators colluding with the creators of Youtube channels, Midcap Calls and Profit Yatra, to create artificial volumes in the Sharpline Broadcast.
SEBI took steps in response to multiple complaints that false content was being posted on these channels as part of a marketing campaign to trick innocent investors. It created false volumes in the scrip of Sharpline from April to August 2022.
As per SEBI, few shareholders utilised this period to book massive profits and this is a violation of SEBI Act and Unfair Trade Practice Regulations mandated by the regulator. According to SEBI, both the channels had high viewership which was enough to pull off the manipulation.
Similar manipulation was also found in the scrips of Sadhna Broadcast. It is alleged that Youtube channels "The Advisor" and "Moneywise" peddled false news to artificially inflate the volumes. All 31 entities involved in the manipulation are barred from the securities market.
Entities are also advised to deposit the illegal gains booked during the period into an escrow account established for the purpose.
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