Sebi imposes Rs 50 lakh on 4 people for manipulating shares of GG Engg

The order came after Sebi carried out an investigation into the scrip of GG Engineering Ltd, and found that the noticees (individuals), prima facie, violated various provisions of market norms

Capital markets regulator Sebi has imposed a penalty of Rs 50 lakh on four individuals for indulging in fraudulent practices involving the manipulation of the shares of G G Engineering Ltd.

The four individuals, Manish Mishra, Sunil Bhandari, Rekha Bhandari and Anshu Mishra, will have to pay the penalty jointly and severally.

"I observe that Manish Mishra, in collusion with Anshu Mishra, Rekha Bhandari, Sunil Bhandari, engaged in a coordinated scheme to induce investors to acquire securities of GGENG (GG Engineering) through uploading false and misleading videos on the YouTube Channels.

"As a part of the scheme, they created artificial volumes in the scrip of GGENGG. Further... Rekha Bhandari and Sunil Bhandari indulged in order spoofing, thereby leading to creation of misleading appearance of trading in the shares of GGENG," Sebi's Adjudicating officer Amit Kapoor said in the order on Friday.

Accordingly, Manish, Anshu, Rekha and Sunil Bhandari have flouted the provisions of the Prohibition of Fraudulent Trade Practices (PFUTP) rules.

The order came after the Securities and Exchange Board of India (Sebi) carried out an investigation into the scrip of GG Engineering Ltd, and found that the noticees (individuals), prima facie, violated various provisions of market norms.

Thereafter, the market watchdog issued a show-cause notice on February 13, 2025, for the alleged violations.

In three separate orders passed on Friday, the regulator slapped fines totalling Rs 16 lakh on three entities or indulging in non-genuine trades in illiquid stock options at the BSE.

Sebi observed a large-scale reversal of trades in the stock options segment of the BSE, leading to creation of artificial volume.

In view of the same, the regulator conducted an investigation into the trading activities of certain entities in illiquid stock options on the BSE for the period starting from April 1, 2014, to September 30, 2015.