SEBI Raids Multiple Locations in ‘Pump and Dump’ Scam Probe
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- Last Updated on 30 June, 2025
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PR No.34/2025 dated 27/06/2025
The Securities and Exchange Board of India (SEBI) has issued a statement confirming that it conducted search and seizure operations at multiple locations during June 2025. These actions are part of an ongoing investigation into alleged “pump and dump” schemes involving certain listed companies.
1. Seizure of Incriminating Evidence
During the raids, SEBI officials seized substantial incriminating evidence believed to be linked to market manipulation activities. The evidence will be crucial in establishing the role of various entities and individuals in orchestrating the fraudulent schemes.
2. Alleged Involvement of Shell Companies
The preliminary findings suggest that the scheme involved 15–20 shell companies, allegedly floated by promoters of some listed entities. These shell companies were purportedly used to artificially inflate stock prices (pump) through coordinated trades, followed by offloading the shares (dump) to unsuspecting retail investors at inflated prices.
3. Investigation in Progress
SEBI has stated that the investigation is currently ongoing and further regulatory action will be taken based on the evidence collected. The market regulator continues to closely monitor suspicious trading patterns and is committed to taking swift enforcement actions to protect investor interests and maintain market integrity.
4. Conclusion
This development underlines SEBI’s proactive enforcement efforts against market abuse and manipulation. The regulator’s firm stance is aimed at deterring unscrupulous practices that undermine investor confidence and transparency in the securities market.
Click Here To Read The Full Press Release
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market manipulation will no longer be camouflaged by shady corporate webs.
Hats off to Sebi for stepping up—now the real test is swift and transparent.