New Delhi: Capital markets regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of ₹50 lakh on four individuals for engaging in fraudulent practices related to the manipulation of shares of G G Engineering Ltd.
The penalty has been imposed jointly and severally on Manish Mishra, Sunil Bhandari, Rekha Bhandari and Anshu Mishra. According to SEBI, the individuals were involved in a coordinated scheme to mislead investors and artificially influence trading activity in the company’s shares.
In an order passed on Friday, SEBI Adjudicating Officer Amit Kapoor stated that Manish Mishra, in collusion with the other three individuals, induced investors to buy shares of GG Engineering by uploading false and misleading videos on YouTube channels. As part of the scheme, the group created artificial trading volumes in the scrip.
The order further noted that Rekha Bhandari and Sunil Bhandari indulged in order spoofing — a deceptive trading practice — which led to a misleading appearance of active trading in the shares of GG Engineering.
SEBI concluded that the four individuals violated provisions of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations. The action followed an investigation conducted by the regulator into the trading activities in the scrip of GG Engineering Ltd, which found prima facie violations of market norms.
Based on the findings, SEBI had issued a show-cause notice to the individuals on February 13, 2025, seeking an explanation for the alleged violations.
Separately, SEBI also passed three additional orders on Friday, imposing penalties totalling ₹16 lakh on three entities for engaging in non-genuine trades in illiquid stock options on the BSE. The regulator observed large-scale reversal of trades in the stock options segment, which resulted in the creation of artificial trading volumes.
Following these observations, SEBI conducted an investigation into trading activities in illiquid stock options on the BSE for the period from April 1, 2014, to September 30, 2015.