SEBI Exposes Major Pump-and-Dump Scam Involving Shell Entities

Securities and Exchange Board of India (SEBI) has recently uncovered a significant *pump-and-dump* operation involving multiple shell companies, all of which were being run from Ahmedabad. Approximately 3,000 to 4,000 retail investors have reportedly been deceived through these manipulative practices.

These shell entities artificially inflated stock prices through misleading promotional activities, luring investors into buying shares at elevated rates. Following this, the operators offloaded their holdings at peak valuations, resulting in substantial losses for those who bought in later.

This revelation has prompted SEBI to intensify its surveillance, with the ongoing inquiry likely to shed light on further violations, including irregularities related to preferential allotments. According to officials, these findings could soon lead to an interim order and possibly broader regulatory action.

SEBI’s swift response reflects its ongoing commitment to ensuring transparency and investor protection within capital markets. The regulator continues to monitor suspicious trading patterns and remains focused on safeguarding public trust in the financial ecosystem.