India’s market regulator Sebi has barred three men from the securities market after uncovering a coordinated YouTube-based scheme to manipulate share prices of Atlantaa Ltd. The accused used misleading videos to lure investors, profiting illegally while violating fair trade norms.
How YouTube Became a Weapon for Stock Market Deceit
In an era where financial advice is just a click away, the Securities and Exchange Board of India (Sebi) has exposed a disturbing new trend—misusing social media platforms to orchestrate market manipulation. In its latest order, Sebi has barred three individuals from accessing or participating in India’s securities markets for five years for misleading investors through deceptive YouTube videos.
At the heart of the scheme was Manish Mishra, creator of two YouTube channels—MIDCAP CALLS and Profit Yatra. Along with associates Vivek Chauhan and Ankur Sharma, Mishra posted videos containing false claims about Atlantaa Ltd, a listed infrastructure company. The goal: artificially inflate interest in the stock to profit from the price surge.
The regulator’s investigation revealed that the trio worked in tandem to disseminate the videos between August 1 and November 23, 2022. The videos urged viewers to buy Atlantaa shares, presenting exaggerated and misleading narratives about the company’s future prospects.
Profits from Falsehood: Disgorgement and Penalties Ordered
Sebi’s probe, triggered by a referral from the National Stock Exchange (NSE), uncovered a deliberate attempt to misguide investors under the PFUTP Regulations—Prohibition of Fraudulent and Unfair Trade Practices. Manish Mishra and Ankur Sharma, it found, traded in Atlantaa shares and collectively made illegal gains worth Rs 10.38 lakh. Vivek Chauhan, although part of the scheme, did not trade himself.
Sebi ordered Mishra to pay a Rs 50 lakh penalty, while Sharma and Chauhan were each fined Rs 10 lakh. Furthermore, Mishra and Sharma were directed to disgorge their profits within 45 days and deposit them into the Investor Protection and Education Fund (IPEF).
The market regulator also underlined that both Mishra and Chauhan were repeat defaulters, having previously faced restraining orders in other cases involving listed firms like Sadhana Broadcast, Sharpline Broadcast, and Pressure Sensitive Systems (India) Ltd.