SEBI calculates ₹4.29 crore profit from Unison Metals stock manipulation

SEBI examined the actions of 17 individuals categorized as beneficiaries, operators, and enablers in this alleged manipulation.

Who it concerns: The order concerns 17 individuals: Yayaati Hasmukhray Nada, Nirali Yayaati Nada, Jasavantbhai Patel, Jignesh Pravinbhai Pethani, Mukti Lodha, Nahush Ashvinbhai Shukla, Prajesh A Shukla, Malay Shaileshbhai Patel, Reetaben Ashvinkumar Shukla, Hardik J Patel, Shailesh S Patel, Jalaj Agrawal, Arvind Shukla, Tirth Uttamchand Mehta, Uttamchand Chandanmal Mehta, Manishaben Bipinchandra Panchal, and Sharad Ramkrishana Gattani. It also involves the company Unison Metals Ltd.

What SEBI found or ordered

• SEBI identified a scheme involving stock recommendations for Unison Metals Ltd. posted on Telegram channels in December 2021.
• SEBI calculated a profit of ₹4,29,80,725.70 earned by the 'Net Sellers/Profit Makers/Beneficiaries' (Noticees 1-10).
• SEBI found that 'Operators' (Noticees 11-13) facilitated the posting of these recommendations, with Mr. Arvind Shukla operating the channels.
• SEBI found that 'Enablers' (Noticees 14-17), including directors of Unison Metals Ltd., aided the scheme by bridging the gap between beneficiaries and operators.
• SEBI noted that recommendations were posted on channels with 4 to 15 lakh subscribers and were deleted on the same day.
• SEBI recorded statements indicating that commission of ₹80 lakhs was involved, with ₹20 lakhs paid via non-banking routes.
• The order references potential directions to disgorge profits, prohibit access to the securities market, and impose penalties under the SEBI Act and PFUTP Regulations.

Also in the document

• The alleged manipulation involved a large-scale audience, with Telegram channels having between 4 and 15 lakh subscribers.
• The scheme involved the deletion of stock recommendations on the same day they were posted.
• SEBI noted that some individuals involved were directors or promoters of the target company, Unison Metals Ltd.
• The order mentions the use of non-banking channels for sharing profits and paying commissions.