SEBI on Thursday clamped down actor Arshad Warsi and 45 other people on doing Share Pump & Dump through youtube.
SEBI on Thursday clamped down actor Arshad Warsi and 45 other people on doing Share Pump & Dump through youtube. SEBI has said they indulged in this Pump and Dump scheme with Youtubers and created volumes and earned a profit of approx Rs. 75 lacs in a month or so.
Further, the market regulator has barred them from further accessing the markets.
Share pump and dump schemes come under the financial fraud category, where tradeable asset holders use tactics to deceive other investors. Once the value of the asset reaches a profitable level, the holders sell off their holdings causing the price to fall.
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In this case, the YouTubers involved allegedly recommended midcap/small cap stocks and in-process trading volumes. Further, they spent on Ads to reach a wider audience. Then they dumped their stock holdings and in return made neat profits.
Moneywise, The Advisor, MidCap Calls, and Profit Yatra are the YouTube Channels that SEBI has reportedly cracked down upon in this case.
