SEBI Cracks Down on New Wave of Pump and Dump Scams
SEBI has seized critical evidence in a pump and dump scam involving multiple companies. The securities regulator conducted search operations across various locations in June 2025, capturing materials to further their investigation. Such scams manipulate stock prices, causing significant investor losses.
- Country:
- India
The Securities and Exchange Board of India (SEBI), the country's market watchdog, announced on Friday that it has seized vital evidence in a pump and dump scam. This scheme allegedly involved shares from various companies and was uncovered during recent search operations.
Though specific details have not been disclosed, SEBI confirmed that search and seizure operations were executed in June 2025 across multiple sites to probe the fraudulent activities. This investigation remains ongoing.
The pump and dump tactic involves spreading false information to artificially inflate a stock's price, allowing perpetrators to sell at a profit before prices crash, leaving investors at a loss. SEBI has ramped up its efforts to curtail these operations, heightened by recent trends exploiting social media and digital platforms.
(With inputs from agencies.)
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