The Securities and Exchange Board of India (SEBI) has barred 221 entities from accessing the securities market after uncovering an alleged ₹144-crore pump-and-dump scam involving five listed companies. The action marks one of the regulator’s biggest crackdowns on organised stock price manipulation in recent years.
According to SEBI, the accused artificially inflated the prices of select low-liquidity stocks through coordinated trading before offloading their holdings at elevated prices. Retail investors were allegedly lured into buying these shares after misleading messages and promotional campaigns created the impression of strong investment opportunities.
The investigation revealed a well-planned network that used digital communication platforms, including WhatsApp groups, to coordinate trading activity and spread stock recommendations. SEBI also relied on financial records, call details, bank transactions and even food delivery records to establish links among the individuals involved in the operation.
The regulator found that the alleged scheme generated unlawful gains of around ₹144 crore. It has directed the accused entities to return the illegal profits while prohibiting them from buying, selling or dealing in securities until further orders.
SEBI also imposed a ₹10-crore penalty on Hanif Shekh, identified as one of the key individuals behind the alleged operation. Investigators said he played a central role in coordinating the manipulation and managing the network involved in the scheme.
The market watchdog said the case demonstrates the increasing sophistication of stock manipulation techniques and highlights its growing use of technology and digital evidence to detect financial misconduct. By analysing electronic communications and transactional data, investigators were able to reconstruct the alleged conspiracy and identify the participants.
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