SEBI warns against market manipulation practices – IBC World News SEBI cautions against manipulation tactics in the market

The Chair of SEBI, Tuhin Kanta Pandey, has issued a strict warning against deceptive practices in the market, stressing the implementation of a zero-tolerance approach towards market manipulation. During a recent industry gathering in Mumbai, Pandey made it clear that SEBI will take decisive action against any efforts to distort the market environment.

“We will remain vigilant. In cases of market manipulation, we will not hesitate to act firmly moving forward. Our actions have been forceful in the past, and we will be even more assertive now,” Pandey emphasized. His remarks arrive amid growing apprehensions regarding irregularities in Small and Medium Enterprises (SME) Initial Public Offerings (IPOs). SEBI has already taken steps in various instances involving inflated subscriptions, deceptive disclosures, and fund misdirection. In some cases, IPO launches have been halted to safeguard investors’ interests.

Aside from SMEs, SEBI is closely investigating pump-and-dump tactics in the secondary market, where investors are enticed to purchase stocks based on misleading hype. Manipulative activities in derivative trading, specifically in index options, are also being examined. Highlighting prominent cases such as that of Gensol Engineering, Pandey highlighted that regulations alone cannot eliminate greed-fueled misconduct. “Greed has been a part of human nature since ancient times. Merely adhering to guidelines is not the solution—what is needed is effective enforcement and timely intervention.”

In April, SEBI took action against Gensol Engineering’s founder, Anmol Singh Jaggi, barring them from participating in the markets for misappropriating public sector NBFC loans and manipulating stock prices. Concluding his statement, Pandey reassured investors, stating, “Even in cases that may currently be occurring, wrongdoers will be apprehended and face repercussions.” SEBI is unwavering in its commitment to preserving market integrity.