The Securities and Exchange Board of India (SEBI) has imposed penalties totalling Rs 2.8 crore on 18 entities and barred them from the securities market for up to five years for manipulating the shares of Retro Green Revolution Ltd (RGRL).
In its 61-page order, SEBI said the entities ran a premeditated scheme to artificially inflate prices of the illiquid RGRL scrip. The regulator found that connected parties traded among themselves to create fake volumes and then circulated stock tips through a Telegram channel to lure investors.
Fifteen of the entities have been directed to disgorge unlawful gains worth Rs 2.94 crore, along with 12 per cent annual interest from December 31, 2021, until payment. The amount must be deposited in Sebi’s Investor Protection and Education Fund within 45 days.
SEBI’s Quasi-Judicial Authority Santosh Shukla noted that Sanjay Arunkumar Choksi and his group played a central role. Although Choksi was no longer the promoter of RGRL, the company remained under his influence as statutory payments were made from his account. “Noticee no 1 (Choksi) did not act in good faith and exploited his influence in the company for personal gains,” Shukla said.
The investigation covered September 2020 to December 2021 and revealed violations of SEBI’s PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules. The watchdog concluded that the entities enabled offloading of illiquid shares to unsuspecting investors, earning unlawful profits.
Penalties ranged between Rs 5 lakh and Rs 50 lakh per entity. SEBI said the case warranted strong action to protect market integrity and investor interests.
