Sebi investigates pump and dump scheme

The Securities and Exchange Board of India (Sebi) announced that they have found significant evidence related to the pump and dump scam during their recent search operations. While not divulging specific details, Sebi confirmed that these operations were conducted at various locations as part of their investigation into the fraudulent activity.

In a pump and dump scheme, individuals disseminate false or deceptive information to manipulate stock prices. This misinformation aims to artificially inflate the stock’s value through a buying frenzy (“pump”) before swiftly selling off shares (“dumping”) at the inflated price. Once the perpetrators sell off their shares and cease promoting the stock, its price typically plummets, resulting in financial losses for investors.

Sebi reported that they executed search and seizure operations at multiple locations in June 2025 pertaining to pump and dump activities involving specific stocks. During these operations, they seized compelling evidence that could aid in their ongoing investigation into the matter.
The regulatory body emphasized that the investigation is continually unfolding as they delve deeper into the pump and dump scam.

Over the past months, Sebi has escalated its efforts to combat pump and dump operations amid a surge in similar schemes conducted through various digital platforms like social media, messaging apps, and video-sharing platforms. By cracking down on these illicit activities, Sebi aims to safeguard investors and uphold the integrity of the financial markets.