India’s markets regulator said on Friday that it found “incriminating evidence” as a part of its ongoing investigation into “pump and dump” practices involving certain stocks.
The Securities and Exchange Board of India (SEBI) said it conducted search and seizure operations in multiple locations this month, but did not name any specific sites or companies involved.
“Pump and dump” refers to a stock manipulation practice in which market participants artificially inflate share prices through continuous purchases, luring other investors to buy in, and then sell their shares at higher prices to realise profits.
Financials, metals lift Indian benchmarks to weekly gains as geopolitical, trade fears ease
Local business news website Moneycontrol reported last week, citing sources, that SEBI carried out raids in Ahmedabad, Mumbai, and the northern hub of Gurugram to crack down on a pump and dump scheme worth more than 3 billion rupees ($35.1 million).
The raids reportedly involved 15 to 20 shell firms. At least two listed agro-tech companies and their promoters are allegedly at the helm of the network, according to the Moneycontrol report.
Comments
Comments are closed for this article.