A Telegram channel provided recommendations to its subscribers for trading in both cash as well as derivatives segments, for both intra-day as well as positional trades. It was promoted through apps like Facebook, WhatsApp and Instagram.
While imposing a penalty of Rs5.83 crore and directing disgorgement of unlawful gains earned through stock recommendation using the chat app Telegram, market regulator SEBI has barred six persons from the markets for one year to three years.
SEBI probe found that individuals were taking positions in small-cap companies and then using platforms like Twitter and Telegram to artificially influence the stock price to make illegal profits
SEBI has barred six persons from accessing the securities market for indulging in fraudulent and unfair trade practices and ordered impounding wrongful gains of Rs 2.84 crore in the case of stock recommendations made using messaging app Telegram.