SEBI Bars CFO, 2 Others for Fraudulent Trading in Atlantaa Scrip, Slaps Rs70 Lakh Penalty

Moneylife Digital Team 02 May 2025

Investor Interest

Market regulator Securities and Exchange Board of India (SEBI) has barred three individuals, Manish Mishra, chief financial officer (CFO) of Atlantaa Ltd, Vivek Chauhan and Ankur Sharma, from the markets for five years for misleading investors through fraudulent practices. These individuals were found guilty of promoting Atlantaa shares by spreading false information via YouTube videos, encouraging investors to purchase the scrip.

SEBI has imposed penalties of Rs50 lakh on Mr Mishra, Rs10 lakh each on Mr Chauhan and Mr Sharma. Additionally, Mr Mishra and Mr Sharma have been directed to disgorge unlawful gains of Rs10.38 lakh, which will be deposited in the Investor Protection and Education Fund (IPEF).

In an order, Santosh Shukla, quasi-judicial authority (QJA) of SEBI, says "I find that Mr Mishra, Mr Chauhan and Mr Sharma have colluded and engaged in a coordinated scheme to upload misleading videos to induce investors to trade in shares of the company and in doing so, they have violated Section 12A(a), (b), (c) of the SEBI Act and regulations 3(a), 3(b), 3(c), 3(d), 4(1) and 4(2)(d), (k) and (r) of the PFUTP Regulations.”

Atlantaa, a company listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), became the focus of a SEBI investigation following suspicious trading activities between 1 August and 23 November 2022. The investigation was triggered by a referral from the NSE, which led to the issuance of a show cause notice (SCN) on 27 June 2024. The SCN accused several individuals, including Mr Mishra, of spreading false and misleading information about Atlantaa to induce investors to trade in its shares.

According to SEBI's investigation, on 2 October 2022, a misleading YouTube video was uploaded on two channels MIDCAP CALLS and Profit Yatra. The video falsely claimed that Atlantaa’s stock price would rise dramatically from Rs18 to Rs130 within two months, with additional misleading assertions that the Adani group was investing in the company and that it was debt-free and fundamentally strong. This content was promoted using paid YouTube ads funded by Mr Mishra.

After the video was posted, Atlantaa's stock price surged by 49.18%, from Rs18.4 to Rs27.45, and trading volumes spiked significantly. The investigation revealed that Mr Mishra, Mr Chauhan, and Mr Sharma profited from the price increase by buying shares at lower prices and selling them at inflated rates.

SEBI found that the video, along with the exaggerated claims and a coordinated campaign, misled investors into believing they were making a sound investment in Atlantaa. The video’s false predictions, including the involvement of the Adani group and claims of rapid stock growth, were determined to be fabricated. After the video went live, the stock's price and trading volume spiked, with many investors acting on the misleading information.

Despite defences from the accused, including claims of evidence tampering and the video being just a personal opinion, SEBI found compelling evidence that the scheme was deliberately designed to mislead investors for personal gain. SEBI investigation also revealed communication between Mr Mishra and other involved parties, indicating clear coordination to spread the misinformation.

Mr Mishra and Mr Chauhan are noted to be repeat defaulters and have acted against the spirit of fair play of the market and sound trading principles in the past, the order said.

Earlier, SEBI had issued restraint orders against Mr Mishra and Mr Chauhan in the matter involving Sadhana Broadcast, Sharpline Broadcast and Pressure Sensitive Systems (India) Ltd.

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