India’s capital markets regulator SEBI has launched a major crackdown on stock market fraud, banning 221 entities for their role in a massive pump‑and‑dump scam worth nearly ₹144 crore. The scheme, described as “industrial‑scale manipulation,” targeted five listed companies between 2017 and 2020.
The mastermind, Hanif Shekh, used a wide network of traders and conduit firms to artificially inflate share prices and trading volumes of Mauria Udyog, 7NR Retail, Darjeeling Ropeway Company, GBL Industries, and Vishal Fabrics. The operation began with synchronised and circular trades to create fake demand. Once prices rose, the group launched large SMS campaigns, urging retail investors to buy shares. These messages mimicked well‑known brokerages, tricking thousands of investors.
As retail buying surged, connected entities sold their holdings at inflated prices, booking huge profits. The illegal gains were routed through multiple layers of companies and financiers, eventually reaching promoters linked to Shekh.
SEBI’s 394‑page order directed recovery of ₹143.79 crore plus 12% interest from October 2020. Shekh was barred for seven years and fined ₹10 crore. Five linked firms were banned for six years and fined ₹2 crore each, while others faced penalties up to ₹1 crore.
The investigation relied on trading records, bank data, WhatsApp chats, telecom details, and travel records, firmly establishing Shekh’s role. SEBI’s action marks a landmark step in protecting retail investors and restoring trust in India’s financial markets.
