SEBI upholds market ban on 21 entities in Sadhna Broadcast Case

The Securities and Exchange Board of India (Sebi) affirmed its market ban on 21 entities involved in a case of share price manipulation of Sadhna Broadcast through the dissemination of misleading videos on YouTube channels. While the ban on Kundan Singh Bisht has been lifted, the total estimated gains from this manipulation have been revised down to Rs 38.61 crore.

Earlier in March, Sebi had imposed bans on several entities, with estimated gains initially set at Rs 41.85 crore. In a 125-page order, Sebi upheld the ban on 21 entities, stating that their submissions failed to challenge the preliminary conclusions drawn in the interim order.

Sebi's Whole-Time Member, Ananth Narayan G, affirmed, "The prima facie findings in the interim order... that the Noticees have engaged in a fraudulent and manipulative scheme... stand confirmed." The responsibility for the gains accrued by each entity will be borne individually.

Additionally, Sebi revoked impounding directives for Subhash Agarwal, Saurabh Gupta, Paras Shah, and Arpan Gupta, as no illegal gains were directly attributed to their trades. Furthermore, Bhim Singh Chaudhary and Yogesh Kumar Gupta were granted permission to withdraw up to Rs 1 lakh per month for family medical expenses.

This order applies to 22 noticees, and the investigation will proceed without being influenced by previous orders. Based on the investigation's outcome, appropriate legal proceedings will be initiated, Sebi stated.