4 YouTube channels that mislead investors, manipulated stocks
Market regulator Securities Exchange Board of India (SEBI) has passed two interim orders against entities that used YouTube channels to manipulate stocks, barring them from the capital markets. The Securities and Exchange Board of India (SEBI), in preliminary investigations, identified 46 entities that used the video streaming platform to pump and dump stocks. These entities — a mix of traders and market analysts — used four YouTube channels to market stocks by uploading misleading videos on YouTube channels and recommending investors to buy shares of certain companies. SEBI’s order in the case came after complaints alleged that misleading YouTube videos with false content about some companies were uploaded to lure investors. These companies include Sadhna and Sharpline.
Names of YouTube channels that duped investors
The names of these YouTube channels are: “The Advisor’, ‘Moneywise’, ‘Midcapcalls‘ and ‘ProfitYatra‘. Google helped SEBI with the names and other details of the promoters of these channels.
What SEBI said while banning
During the second half of July 2022, false and misleading videos about Sadhna were uploaded on two YouTube channels — ‘The Advisor’ and ‘Moneywise’. “These YouTube videos peddled false and misleading news to recommend that investors should buy the Sadhna stock for extraordinary profits,” Sebi said, adding that these YouTube channels had lakhs of subscribers and the misleading YouTube videos had crores of viewership aided by promotion through paid advertising campaigns.
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Subsequent to the release of the misleading YouTube videos, there was an increase in the price and trading volume of Sadhna stock. Sebi said the volumes appear to have been contributed by a large number of retail investors likely influenced by the misleading YouTube videos. In one stock, the number of small shareholders increased from 2,167 to 55,343 in a short span of one quarter. In a second stock, the number of small shareholders increased from 517 to 20,009, SEBI found in its investigation.
Zerodha CEO praises SEBI
Zerodha CEO Nithin Kamath praised market regulator Sebi’s action. “SEBI is killing it with these enforcement orders. Yesterday’s (order) against the pump & dump schemes peddled by selling greed & unrealistic returns through social media & YouTube should serve as a powerful deterrent,” Kamath said.
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Market regulator Securities Exchange Board of India (SEBI) has passed two interim orders against entities that used YouTube channels to manipulate stocks, barring them from the capital markets. The Securities and Exchange Board of India (SEBI), in preliminary investigations, identified 46 entities that used the video streaming platform to pump and dump stocks. These entities — a mix of traders and market analysts — used four YouTube channels to market stocks by uploading misleading videos on YouTube channels and recommending investors to buy shares of certain companies. SEBI’s order in the case came after complaints alleged that misleading YouTube videos with false content about some companies were uploaded to lure investors. These companies include Sadhna and Sharpline.
Names of YouTube channels that duped investors
The names of these YouTube channels are: “The Advisor’, ‘Moneywise’, ‘Midcapcalls‘ and ‘ProfitYatra‘. Google helped SEBI with the names and other details of the promoters of these channels.
What SEBI said while banning
During the second half of July 2022, false and misleading videos about Sadhna were uploaded on two YouTube channels — ‘The Advisor’ and ‘Moneywise’. “These YouTube videos peddled false and misleading news to recommend that investors should buy the Sadhna stock for extraordinary profits,” Sebi said, adding that these YouTube channels had lakhs of subscribers and the misleading YouTube videos had crores of viewership aided by promotion through paid advertising campaigns.
Read Also
Subsequent to the release of the misleading YouTube videos, there was an increase in the price and trading volume of Sadhna stock. Sebi said the volumes appear to have been contributed by a large number of retail investors likely influenced by the misleading YouTube videos. In one stock, the number of small shareholders increased from 2,167 to 55,343 in a short span of one quarter. In a second stock, the number of small shareholders increased from 517 to 20,009, SEBI found in its investigation.
Zerodha CEO praises SEBI
Zerodha CEO Nithin Kamath praised market regulator Sebi’s action. “SEBI is killing it with these enforcement orders. Yesterday’s (order) against the pump & dump schemes peddled by selling greed & unrealistic returns through social media & YouTube should serve as a powerful deterrent,” Kamath said.
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