Market regulator Sebi revises illegal gains amount in pump-and-dump matter

The Securities and Exchange Board of India (Sebi) has revised the illegal gains made by four players in the alleged pump and dump scheme in Sadhna Broadcast operated through misleading videos on YouTube. It stands revised to Rs 40.22 crore from the previous amount of Rs 42 crore stated in the interim order of March 2. The revision has been done based on the submission on difference in the mechanism adhered for profit calculation. 

Sebi had issued the order on 31 entities which allegedly operated the pump-and-dump scheme. However, several other requests for relief, like that on defreezing of accounts, have been denied by the Sebi whole-time-member. The regulator said that investigations were ongoing in the matter and the observations are only tentative. 

Sebi had earlier named actor Arshad Warsi in the same matter. However, the Securities and Appellate Tribunal had granted interim relief by setting aside the Sebi order debarring them from the securities market. The tribunal had asked Sebi to complete its investigation in six months and initiate appropriate proceedings.