Sebi conducts raids across country; cracks down on pump, dump schemes

Sebi has seized incriminating evidence through multiple search operations across cities as part of its investigation into fraudulent pump and dump stock schemes

The Securities and Exchange Board of India (Sebi) has conducted multiple search operations across cities as part of its crackdown on “pump and dump” schemes.

 

“Sebi has conducted search and seizure operations at multiple locations in the month of June 2025 in connection with pump and dump in certain scrips and has seized incriminating evidence. Investigation in the matter is under progress,” the regulator said in a statement.

 

Pump and dump is a fraudulent practice in which perpetrators artificially inflate the price of a stock by creating trading volume and hype, often through misleading information. This attracts unsuspecting investors, who buy the stock at inflated prices. Once the price peaks, the fraudsters offload their holdings, causing the price to collapse and leaving investors with worthless shares. 

 

In the past, Sebi has taken stringent action against promoters and related entities involved in such activities. In June 2025, it carried out search and seizure operations at several locations in connection with pump and dump schemes involving certain stocks. Incriminating material was recovered, and the investigation is ongoing, the market regulator said.

 

In recent cases involving small and medium-sized enterprises (SMEs), Sebi has acted against perpetrators who used misleading videos on YouTube and other social media platforms to manipulate stock prices. These schemes often involved promoter entities allegedly dumping their shares at peak valuations.