The Securities and Exchange Board of India (Sebi) has fined 11 people Rs 7.75 crore for allegedly carrying out a ‘pump and dump’ scheme in Svarnim Trade Udyog funds. The market regulator has also barred them from the securities market and ordered disbursement of Rs 92.37 lakh with annual interest of 12 percent. The pump and dump system was carried out through recommendations shared through Telegram channels, which led to public shareholders buying the shares at a high price. Two of the individuals sanctioned in this case also faced regulatory action under another pump and dump scheme and the period of restriction for them will begin after serving the ban in the previous order.
First print: June 1, 2024 | 12:16 pm IST