SEBI Cracks Down on Market Misconduct with Firm Enforcement Actions

The Securities and Exchange Board of India (Sebi) has intensified its regulatory actions, targeting 886 entities involved in fraudulent and unfair trade practices in the securities market from April 2024 to June 2025. This update was conveyed to Parliament by Finance Minister Nirmala Sitharaman on Tuesday.

The violations, encompassing price and volume manipulation and front-running, are governed by Sebi's Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations, 2003. These illicit activities are under Sebi's scrutiny as they continually assess mis-statements in the financial disclosures of publicly listed companies, which can impact shareholders and market stability.

Sebi also maintains a firm regulatory framework for foreign firms trading in Indian markets, in accordance with the Sebi Act, 1992, and the Sebi FPIs Regulations, 2019. These measures align with the Foreign Exchange Management Act, 1999, ensuring a comprehensive approach to market integrity.

(With inputs from agencies.)