Zerodha founder Nithin Kamath heaped praise on SEBI for its enforcement orders against pump-and-dump schemes peddled through YouTube and other social media platforms.
What Happened? Kamath took to Twitter to state that social media platforms have lately become an easy playground for market manipulators and that SEBI’s orders would serve as a “powerful deterrent” to “schemes peddled by selling greed & unrealistic returns.”
The market regulator on Thursday passed two separate orders in the matter of stock recommendations propagated using YouTube channels in the counter of Sadhna Broadcast, and Sharpline Broadcast.
SEBI, after a prolonged investigation, identified several entities in its orders — including famous Bollywood actor Arshad Warsi and his wife Maria Goretti Warsi — engaged in rampant manipulation and barred them from further accessing the markets.
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“These elaborate orders should hopefully put some fear amongst unauthorized tipsters and people offering unauthorized portfolio management services. Such actors damage the sanctity of capital markets in India,” Kamath said.
The billionaire broker, in a follow-up tweet, mentioned that Zerodha, the largest stock broker in India, has been prompting its users with a nudge when a case of pump and dump is spotted in a counter.
“In the last 3 years of nudges, potential scammy stock trading volumes as a percentage of overall equity volumes are down by ~90% at Zerodha,” said Kamath.
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