Pump and dump scheme: What is it, how it works and how is it monitored

Arshad Warsi made a profit of Rs 29.43 lakh and his wife Maria Goretti of Rs 37.56 lakh using a YouTube-run pump and dump operation last year

On Thursday, the Securities and Exchange Board of India (Sebi) imposed a penalty on Bollywood actor Arshad Warsi, his wife Maria Goretti and 29 others for their YouTube-run pump and dump operation. Reports have suggested that Warsi made a profit of Rs 29.43 lakh and his wife Rs 37.56 lakh between April 27 and September 30 last year using this operation.

What is a pump-and-dump scheme?

Pump and dump is a manipulative scheme in which a person tries to increase the price of a share using fake information. The claims are false, misleading, exaggerated, and spread to make personal gains. This is