SEBI investigates 16-month stock tip scheme in Retro Green Revolution Limited

This order addresses SEBI's investigation into alleged price manipulation and volume creation in the shares of Retro Green Revolution Limited (RGRL) between September 2020 and December 2021, specifically examining whether stock tips were circulated via Telegram channels to influence trading.

Who it concerns: Retro Green Revolution Limited; Mr. Sanjay Arunkumar Choksi; Mr. Viral Kapadia; Mr. Samir Sampat; Mr. Vishnu Sharma; Mr. Amesh Jaiswal; Mr. Vijay Pujara; Mr. Sanjay Arunkumar Choksi HUF; Mr. Sagar Choksi; Mr. Jenita Jain; Mr. Trupti Choksi; Mr. Umeshkumar Shah; Mr. Vraj Shah; Mr. Sneh Chokshi; Maama Mia Retailing Private Limited; Western Agrotech Innovative Limited; Mr. Rajesh Pandey; Mr. Amit Sharma; Mr. Ganesh Bodakhe; Mr. Mohd. Azim Mapkar; Mr. Sushil Shinde; Mr. Jalaj Agarwal

What SEBI found or ordered

• SEBI investigated trading activities in RGRL shares for the period September 1, 2020, to December 31, 2021.
• SEBI alleged that stock recommendations/tips were circulated through a Telegram channel.
• SEBI found instances of price manipulation, New High Price (NHP) creation, volume creation, and off-loading of shares.
• SEBI identified aiding and abetting by Noticees No. 16, 17, and 18.
• SEBI directed disgorgement of unlawful gains from Noticees No. 1 to 15.
• SEBI imposed enforcement directions and penalties under Sections 11(1), 11(4), 11(4A), 11B(1), 11B(2), and 15HA of the SEBI Act.

Also in the document

• The investigation period spans approximately 16 months (Sept 2020 to Dec 2021).
• The Choksi Group held approximately 42% of RGRL's shareholding by the end of Financial Year 2021.
• SEBI noted that the company's bank account was opened only in 2016 and statutory payments were received from the accounts of Noticee No. 1 or his son, Noticee No. 8.
• Cross-examination of Noticee No. 1 was delayed multiple times due to medical grounds, and Noticee No. 5 was noted as having absconded without paying fees.