Source money control
NEW DELHI — In a major move to protect retail investors from digital-age fraud, the Securities and Exchange Board of India (SEBI) has barred 18 individuals and entities for their involvement in an elaborate stock manipulation scheme. The regulator has ordered the disgorgement of ₹2.94 crore in “ill-gotten profits” and imposed an additional penalty of ₹2.80 crore.
The “Retro Green” Manipulation Scheme
The case centers on the shares of Retro Green Revolution Ltd, a company that saw its stock price artificially inflated during the December quarter of 2021. According to the SEBI order issued on March 17, 2026, a group led by the Choksi group and several accomplices orchestrated a “premeditated scheme” to jack up the price of the otherwise illiquid stock.
The investigation revealed a multi-layered strategy:
Artificial Volume: Entities traded among themselves to create a false appearance of high market interest.
Telegram “Tips”: The group used social media, specifically a Telegram channel, to disseminate fake stock recommendations. These “tips” lured unsuspecting retail investors into buying the stock, further driving up the price.
The Exit: Once the stock price had surged by 177%, the Choksi group—which held a 42% stake—unloaded a significant portion of their holdings (39.5%) onto the public at inflated prices.
Financial and Regulatory Penalties
The market regulator has taken a “zero-tolerance” stance against this coordinated rigging. The final order includes:
Measure Detail
Disgorgement ₹2.94 crore plus 12% interest per annum.
Penalty ₹2.80 crore aggregate fine on the perpetrators.
Market Ban Entities barred from the securities market for 3 to 5 years.
Interest Period Interest calculated from December 2021 until the date of payment.
A Warning to Retail Investors
SEBI highlighted that the scheme targeted “innocent public investors” who often rely on social media for financial advice. The regulator’s order noted that the volume of the stock spiked by 92% immediately following the Telegram recommendations, proving how effectively the fraudsters used digital platforms to manipulate market sentiment.
“This is a case where a premeditated scheme was orchestrated to jack up the price of an illiquid scrip having abysmally thin volumes… to allure innocent public investors,” the SEBI order stated.
Investors are advised to exercise caution and deal only with SEBI-registered intermediaries, avoiding “get-rich-quick” schemes shared via messaging apps like Telegram or WhatsApp.
