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SEBI conducts search and seizure operations against stock manipulators

SEBI conducts search and seizure operations against stock manipulators

In an effort to unearth market manipulation, SEBI (Securities and Exchange Board of India), a capital markets regulator, has recently carried out search and seizure operations across multiple premises. These premises are in Bhavnagar and Ahmedabad in Gujarat, Mumbai, Delhi, and Neemuch in Madhya Pradesh.

During the recent investigation, the officials of the regulatory body have seized multiple documents and records, which include 34 mobile phones, 4 desktops, 6 laptops, 2 hard drive disks, 4 tablets, and 1 pen drive from the custody.

According to the regulator, these entities were operating over nine Telegram channels with more than 5 million subscribers. They were reportedly making recommendations to these subscribers on select listed stocks. These recommendations have encouraged investors to deal in the stocks, thus creating artificial stock volume and price rise.

With the use of this fraudulent method, the entities have also provided an opportunity to the linked entities to off-load the shares at high prices as well as make profits from retail investors.

Seemingly, SEBI has started a detailed investigation and analysis of the emails, data, and other documents from the premises, which are being recovered from the seized devices of the stock manipulators.

In its release, SEBI has revealed that it received information regarding the wide circulation of messages containing investment advice like stock tips about selected listed companies via websites and social media platforms like Instagram, WhatsApp, Facebook, and Telegram.

The regulator has further stated that the perpetrators of such fraudulent activities adopt varied marketing techniques to attract many subscribers on social media channels.

Against the backdrop of these activities, the regulator has cautioned retail investors to not rely on investment advice or tips received via social media platforms. It has further advised them to exercise the utmost caution while making investments in the securities market.

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.