Sebi raids market manipulators across 4 states - Times of India

Sebi raids market manipulators across 4 states – Times of India

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MUMBAI: Sebi on Thursday conducted raids at several cities in India and seized mobile phones, laptops, desktops, etc, which were being used to manipulate stock prices through messages and posts on nine Telegram channels with a combined subscriber base of about 50 lakh. Sebi warned investors not to “rely on unsolicited investment tips received through social media platforms” to make investment decisions.
The regulator had taken permission from Sebi special judge Purushottam B Jadhav before conducting the ‘search and seizure’ operation across Ahmedabad & Bhavnagar in Gujarat, Neemuch in Madhya Pradesh, Delhi and Mumbai, a source said. It had carried out search and seizure operations at the premises of seven individuals and one corporate entity. A Sebi release said it seized various records & documents and a large number of electronic as well as storage devices.
“These entities are reportedly operating nine Telegram channels with more than 5 million (50 lakh) subscribers to whom they were making recommendations on selected listed scrips. Such recommendations induced the investors to deal in the said scrips, thereby creating artificial volume and price rise. This provided opportunities to their linked entities to off-load their shares at higher prices and make significant profits at the cost of unsuspecting retail investors,” Sebi said. “The data, emails and other documents are being retrieved from the seized devices and a detailed investigation is in progress.”
This search and seizure operation was part of Sebi’s ongoing endeavour to weed out those elements who try to induce gullible investors into buying stocks of questionable or no fundamentals, push up the price of those stocks and then exit slowly once a large number of investors have invested in those scrips.



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