SEBI Chief Reveals Alarming Financial Frauds in Indian Markets
Securities and Exchange Board of India Chairman Tuhin Kanta Pandey highlighted financial frauds in Indian capital markets during the Future Proof Forensics 2025 event. These range from asset diversion to complex fraudulent schemes involving related-party transactions and misuse of preferential allotment, exposing significant risks to market integrity and investor trust.
- Country:
- India
At the Future Proof Forensics 2025 event in Mumbai, Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), spotlighted a range of alarming financial frauds in the Indian capital markets. From shareholder fund diversions to intricate schemes, these frauds exploit regulatory gaps.
Pandey underscored the importance of maintaining market integrity, essential for investor confidence and capital growth. SEBI's investigations have exposed cases where companies misused investor funds, including asset transfers to subsidiaries to settle promoter-linked debts.
The Chairman elaborated on instances involving circular transactions and misleading disclosures used to siphon funds and exploit preferential allotments. Such practices often mislead retail investors and undermine market stability, prompting SEBI to intensify its forensic audits.
(With inputs from agencies.)
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