Sadhna Broadcast case: Sebi bars Ravindra Dahyabhai Patel from dealing in securities for 6 months

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Sebi has debarred Ravindra Dahyabhai Patel from buying, selling or dealing in securities, either directly or indirectly, for a period of six months in connection with Sadhna Broadcast Limited, as per a Securities and Exchange Board of India  (SEBI) settlement order dated February 27.

SEBI, in its settlement order, said that it received certain complaints during July-September 2022, alleging that there was price manipulation and subsequent offloading of shares in the scrip of Sadhna Broadcast Limited .

SEBI examined the complaints and discovered that some net sellers of Sadhna Broadcast Limited shares were linked to the creator of certain YouTube channels. These channels uploaded videos containing false information and unrealistic target prices for the stock. The intention behind these videos was to influence and mislead public investors into investing in the scrip. Following its examination, SEBI issued an interim order in the matter on March 2, 2023.

In the meantime, SEBI also conducted an investigation from March 08, 2022 to November 30, 2022  to ascertain the possible violations of the provisions of the SEBI Act, 1992 and the SEBI PFUTP Regulations, 2003.

After conclusion of the investigation, a show cause notice (SCN) dated January 9 was issued to various entities, including Patel where in it alleged certain violations of the PFUTP Regulations, 2003.

A notice of demand was issued to the Patel on February 06, 2025, for Rs 72.8 lakh as the settlement amount and Rs 1.9 crore as the disgorgement amount. And Patel had remitted the said amounts on February 19.