Description

SEBI issues enforcement order against 21 noticees for price manipulation, volume creation, and fraudulent trading in shares of Retro Green Revolution Limited (RGRL) listed on BSE.

Summary

SEBI issued an enforcement order under Sections 11(1), 11(4), 11(4A), 11B(1), 11B(2) and Section 15HA of the SEBI Act, 1992 against 21 noticees for orchestrating a price manipulation scheme in the shares of Retro Green Revolution Limited (RGRL), a BSE-listed company in the agro-based projects and greenhouse business. The order covers price manipulation, artificial volume creation, off-loading of shares, and use of Telegram messaging to instigate trading activity.

Key Points

  • 21 noticees charged including individuals, a HUF entity, and two private/limited companies
  • RGRL (originally Jolly Tea India Company Limited, formed 1990) is listed on BSE in agro/greenhouse sector
  • Key accused include Mr. Sanjay Arunkumar Choksi (Noticee No. 1) as primary promoter
  • Charges include price manipulation to create New High Prices (NHP), coordinated first-trade analysis manipulation, and volume creation
  • Telegram messages used to instigate artificial trading volumes (pump-and-dump)
  • Noticees 16, 17, and 18 (Rajesh Pandey, Amit Sharma, Ganesh Bodakhe) charged with aiding and abetting
  • Order includes findings on disgorgement of unlawful gains and enforcement directions/penalties
  • 61-page detailed order covering background, SCN, hearings, merits, and conclusions

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action applying existing SEBI Act provisions:

  • Sections 11(1), 11(4), 11(4A), 11B(1), 11B(2) of SEBI Act, 1992
  • Section 15HA of SEBI Act, 1992 (penalty for fraudulent and unfair trade practices)
  • Rule 4 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995

Compliance Requirements

  • Noticees directed to disgorge unlawful gains as determined in Section G of the order
  • Enforcement directions and penalties imposed per Section H of the order
  • Specific directions issued against all 21 noticees per Section I of the order
  • Market participants are reminded that coordinated trading, artificial volume creation, and social media-based manipulation (including Telegram) constitute violations subject to SEBI enforcement

Important Dates

  • Order reference number: QJA/SS/IVD/ID4/32226/2025-26
  • Circular published: 2026-03-17
  • RGRL originally incorporated: 1990 (as Jolly Tea India Company Limited)
  • Shareholding changes noted post-2012

Impact Assessment

This order signals SEBI’s continued focus on social media and messaging-platform-driven market manipulation, particularly pump-and-dump schemes using Telegram. The involvement of 21 entities across individuals, HUFs, and companies demonstrates coordinated manipulation. Disgorgement of unlawful gains and penalties impose direct financial consequences. Market participants using messaging platforms to coordinate trading activity face significant regulatory risk. The order reinforces surveillance of SME and small-cap listed companies on BSE that are susceptible to manipulation due to low liquidity.

Impact Justification

SEBI enforcement order with penalties and disgorgement against 21 entities for coordinated price manipulation and fraudulent trading involving telegram-based pump-and-dump scheme.