SEBI Penalizes 17 in Unison Metals Stock Scam, Bans Market Access

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AuthorAnanya Iyer|Published at:
SEBI Penalizes 17 in Unison Metals Stock Scam, Bans Market Access
Overview

SEBI has finalized its probe into Unison Metals Ltd., penalizing 17 individuals and entities for a stock manipulation scheme. The regulator imposed market bans for 1-3 years and ordered disgorgement of ₹3.87 crore, plus ₹1.37 crore in penalties, totaling over ₹5.24 crore. The fraudulent practice involved using Telegram channels to inflate stock prices and offload shares, violating market integrity rules.

SEBI Imposes Severe Penalties in Unison Metals Stock Manipulation Case

Regulator Bans 17 Individuals, Orders ₹5.24 Cr Disgorgement and Fines for Telegram-Driven Scheme.

The Securities and Exchange Board of India (SEBI) has issued a decisive final order concerning the stock manipulation of Unison Metals Ltd., bringing to light a sophisticated scheme orchestrated via social media.

The Penalties:

  • Market Bans: 11 individuals and entities face bans from accessing the securities market for periods ranging from 1 to 3 years.
  • Disgorgement: A total of ₹3,87,45,475.70 has been ordered for disgorgement from 9 parties identified as Net Sellers, Profit Makers, or Beneficiaries of the unlawful gains.
  • Monetary Penalties: An aggregate of ₹1.37 crore has been levied on 15 noticees, with individual penalties spanning ₹10 lakh to ₹1 crore.
  • Exoneration: Two individuals were cleared of charges with no directions issued against them.

The Scheme:

SEBI's investigation uncovered a fraudulent practice where stock recommendations were disseminated through Telegram channels to artificially create demand. This was designed to enable specific entities to off-load their holdings at inflated prices, thereby duping unsuspecting retail investors.

Regulatory Stance:

The order emphasizes that these actions constituted violations of the SEBI Act and the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations. SEBI reiterated its unwavering commitment to upholding market integrity and protecting investor interests through stringent enforcement.

Investor Alert:

This case serves as a stark reminder to investors to exercise extreme caution regarding unsolicited stock tips, particularly those originating from social media platforms. Reliance on such information can lead to significant financial losses.

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