Sebi confirms multiple raids in 'pump-and-dump' case, investigation ongoing
Market regulator Sebi on Friday issued a formal clarification regarding recent media reports of its actions in a pump-and-dump scam. The regulator confirmed that it conducted search and seizure operations at multiple locations during June 2025 in connection with suspicious trading activity in select stocks.
According to Sebi, these operations led to the seizure of incriminating evidence, which is now being examined. The market watchdog stated that the investigation is currently underway, and further regulatory action, if warranted, will be based on the findings.
The clarification comes after various media outlets reported that Sebi had launched raids on entities allegedly involved in artificially inflating stock prices and misleading retail investors — a classic case of a pump-and-dump scheme.
In such schemes, the price of a stock is manipulated by false or misleading statements to generate interest and attract retail investors. Once prices peak, the perpetrators offload their holdings at inflated rates, leaving retail participants with significant losses.
Sebi did not name any specific companies, individuals, or intermediaries involved, citing the ongoing nature of the investigation.
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However, the confirmation of such action highlights the regulator's continuing emphasis on maintaining market integrity and protecting investor interests, especially in a time when retail participation in the markets is at record highs.
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Over the past few years, the regulator has enhanced its surveillance systems and increased the use of data analytics and artificial intelligence to detect irregular trading patterns in real-time.
Market participants, especially retail investors, are advised to exercise caution, conduct due diligence, and avoid falling prey to tips circulated through messaging apps or social media platforms.
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