SEBI imposed a penalty ₹5,68,00,000 on admins of telegram channel "bullrun2017" 🤯
They booked ILLEGAL PROFITS by providing “Misleading Information”📈
If you are on a Telegram group, how do you avoid such scams? A thread🧵👇
They booked ILLEGAL PROFITS by providing “Misleading Information”📈
If you are on a Telegram group, how do you avoid such scams? A thread🧵👇
[1] About the Channel
The channel had more than 49,000 subscribers as of January 12, 2022
🔸Described as a channel run by 4 research analysts
🔸Combined exp. of 40 years was also written in the bio
🔸Administrators were not SEBI registered Research Analyst
The channel had more than 49,000 subscribers as of January 12, 2022
🔸Described as a channel run by 4 research analysts
🔸Combined exp. of 40 years was also written in the bio
🔸Administrators were not SEBI registered Research Analyst
[2] Types of Recommendation
The admins gave stock recommendations to the subscribers
🔸Cash and derivatives segment stocks were recommended
🔸Intraday positions and positional trades were also suggested
🔸Cash segment trades mainly focused on small-cap stocks
The admins gave stock recommendations to the subscribers
🔸Cash and derivatives segment stocks were recommended
🔸Intraday positions and positional trades were also suggested
🔸Cash segment trades mainly focused on small-cap stocks
![[2] Types of Recommendation
The admins gave stock recommendations to the subscribers
🔸Cash and der...](https://pbs.twimg.com/media/F1dOmTaXsAUDSD3.jpg)
![[2] Types of Recommendation
The admins gave stock recommendations to the subscribers
🔸Cash and der...](https://pbs.twimg.com/media/F1dOmWiXwAE1KBx.png)
[3] Modus Operandi
Admins implemented a "pump & dump" strategy to book ₹2.68 crore. How?
🔸Bought small-cap stocks in big quantities📈
🔸Gave stock-specific tips to subscribers
🔸Buying by subscribers inflated the price🚀
Admins implemented a "pump & dump" strategy to book ₹2.68 crore. How?
🔸Bought small-cap stocks in big quantities📈
🔸Gave stock-specific tips to subscribers
🔸Buying by subscribers inflated the price🚀
🔸Admins profited by selling the recommended shares💰💸
[4] Action By SEBI
Telegram channel "bullrun2017" had been under SEBI's radar after receiving 2 complaints in 2021
🔸Raided premises of the main accused in 2021
🔸In January 2022, interim order for fraudulent activities was issued against all 6 involved
Telegram channel "bullrun2017" had been under SEBI's radar after receiving 2 complaints in 2021
🔸Raided premises of the main accused in 2021
🔸In January 2022, interim order for fraudulent activities was issued against all 6 involved
[5] The Final Order
In April 2023 SEBI issued a final order against the accused for violations of sections
🔸11 (1), 11 (4), 11 (4A), 11B (1), and 11B (2) of the SEBI Act, 1992.
The 37-page final order also had many penalties and bans on the accused
In April 2023 SEBI issued a final order against the accused for violations of sections
🔸11 (1), 11 (4), 11 (4A), 11B (1), and 11B (2) of the SEBI Act, 1992.
The 37-page final order also had many penalties and bans on the accused
[6] Penalties
Regulators imposed a 2x profits fine on the main accused
👉₹5.68 crore to be paid as a penalty for fraudulent activities
👉Re-payment of ₹2.68 crore profits with 12% p.a. SI into IPFF of SEBI out of which ₹98.84 lakh already paid
Regulators imposed a 2x profits fine on the main accused
👉₹5.68 crore to be paid as a penalty for fraudulent activities
👉Re-payment of ₹2.68 crore profits with 12% p.a. SI into IPFF of SEBI out of which ₹98.84 lakh already paid
👉₹5 lakh fine on each family member
[7] Ban from Market Access
Apart from penalties, people involved have been banned from entering the securities market
👉3-year ban on direct & indirect trades by 3 main accused
👉1-year ban on 3 family members due to indirect involvement and wrongful gains
Apart from penalties, people involved have been banned from entering the securities market
👉3-year ban on direct & indirect trades by 3 main accused
👉1-year ban on 3 family members due to indirect involvement and wrongful gains
[8] Another case
🔸SEBI levied a cumulative fine of ₹70 lakh on 7 entities for violating SEBI's insider trading regulations
🔸Accused were asked pay back illegal gains worth 27.59 crore with 9% interest p.a. from May, 2017 till date of payment
🔸SEBI levied a cumulative fine of ₹70 lakh on 7 entities for violating SEBI's insider trading regulations
🔸Accused were asked pay back illegal gains worth 27.59 crore with 9% interest p.a. from May, 2017 till date of payment
[9] But why?
🔸The accused were found guilty of avoiding losses by selling shares of Shilpi Cable Technologies Ltd.
🔸They sold shares because they had some unpublished price sensitive information which would've caused negative impact on stock on getting published.
🔸The accused were found guilty of avoiding losses by selling shares of Shilpi Cable Technologies Ltd.
🔸They sold shares because they had some unpublished price sensitive information which would've caused negative impact on stock on getting published.
🔸The Finance Ministry along with the SEBI, is working on guidelines for those who give stock tips on social media.
🔸The FM added that investors are advised to be cautious with the financial tips received on social media platforms.
🔸The FM added that investors are advised to be cautious with the financial tips received on social media platforms.
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