Mumbai, India – March 19, 2026
India’s market regulator SEBI has imposed penalties totaling ₹2.8 crore on 18 entities for allegedly manipulating shares of Retro Green Revolution Ltd. (RGRL), along with a ban from the securities market for up to five years.
SEBI Orders Recovery of Illegal Gains
In its detailed 61-page order, the Securities and Exchange Board of India (SEBI) directed 15 of the 18 entities to return illegal gains amounting to ₹2.94 crore.
The amount must be deposited within 45 days into SEBI’s Investor Protection and Education Fund, along with 12% annual interest calculated from December 31, 2021, until the date of payment.
Pre-Planned Scheme to Inflate Share Prices
SEBI found that the entities were part of a coordinated scheme to artificially inflate the price of RGRL shares, which had low liquidity.
The manipulation involved synchronized trading among connected entities to create artificial volume. This was followed by the circulation of stock tips and recommendations through messaging platforms such as Telegram to attract retail investors.
Key Role of Sanjay Chokshi Group
According to the order, Sanjay Arun Kumar Chokshi and associated entities played a central role in the manipulation.
The regulator noted that despite not being an official promoter at the time, Chokshi continued to exercise control over the company. Payments related to statutory obligations were reportedly made through accounts linked to him.
Abuse of Influence for Personal Gains
SEBI’s adjudicating officer, Santosh Shukla, stated that the primary accused misused their position and influence for personal gain rather than acting in good faith.
The regulator emphasized that unusual trading volumes and coordinated recommendations were clear indicators aimed at misleading investors and influencing trading decisions.
Penalties Range from ₹5 Lakh to ₹50 Lakh
The entities involved were fined amounts ranging from ₹5 lakh to ₹50 lakh each, depending on their role and level of involvement in the scheme.
SEBI concluded that the entities collectively enabled the offloading of shares to unsuspecting investors, resulting in unlawful gains exceeding ₹2.94 crore.
Violation of Market Regulations
The investigation covered the period between September 1, 2020, and December 31, 2021, to examine violations of SEBI’s PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.
Following the probe, show-cause notices were issued on November 8, 2024, before the final order was passed.
