SEBI bans 222 over pump-and-dump, orders 47.7cr in fines
Business
SEBI just banned 222 individuals and companies for four to seven years after uncovering a major pump-and-dump scam.
Between 2017 and 2020, these groups manipulated the stocks of five companies: Mauria Udyog, Vishal Fabrics, 7NR Retail, GBL Industries, and Darjeeling Ropeway Company, pocketing illegal gains.
SEBI's order also slapped them with ₹47.7 crore in fines and ordered them to return all unfair profits.
Hanif Shekh banned 7yr fined 10cr
The scheme was led by Hanif Shekh, who used bulk SMS campaigns and fake trading activity to hype up stocks before selling at high prices.
He got a seven-year ban and a ₹10 crore fine.
Goenka Business Finance Ltd. also played a significant role in creating artificial price movement and trading volumes in certain scrips.