SEBI Uncovers “Pump and Dump” Stock Scheme Worth Over ₹3 Billion
India’s market regulator, the Securities and Exchange Board of India (SEBI), has unearthed “incriminating evidence” in its ongoing investigation into a suspected “pump and dump” scheme. The regulator recently conducted search and seizure operations at multiple locations as part of its crackdown on manipulative trading practices, although it did not disclose the names of the companies or individuals involved.
“Pump and dump” refers to a form of stock manipulation where certain players artificially drive up share prices through repeated purchases, creating a buying frenzy among retail investors. Once the price peaks, the manipulators offload their holdings at a profit, leaving unsuspecting investors with depreciated stocks. SEBI’s enforcement action is aimed at curbing such fraudulent practices that harm market integrity.
According to a report by Moneycontrol, SEBI’s recent raids targeted operations in Ahmedabad, Mumbai, and Gurugram, with the total value of the suspected scheme exceeding ₹3 billion (approximately $35.1 million). The crackdown reportedly involved 15 to 20 shell companies, with at least two listed agro-tech firms and their promoters allegedly leading the network.
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