SEBI Conducts Raids on Stock Market Operators Across 100 Premises

SEBI Cracks Down: 

The targeted operations were aimed at stock market players engaged in the illicit manipulation of share prices and the unauthorized dumping of shares from smaller companies into the market.

Raids Target Stock Market Operators in GujaratIn a recent move, SEBI, the market watchdog, is on a mission, conducting raids at approximately 100 locations in Gujarat. 

The focus? 

Stock market operators suspected of manipulating share prices and engaging in illicit offloading of small company shares. SEBI's surveillance team is actively involved in these searches to ensure a fair playing field.

The culprits have found a new playground for their schemes – popular messaging platforms like WhatsApp and Telegram. 

Operating under the guise of 'stock tips,' they entice potential investors through social media channels such as Facebook, YouTube, Reddit, and Instagram. 

Their modus operandi involves accumulating shares of lesser-known companies and then enticing retail investors to buy through WhatsApp groups.

SEBI has detected irregularities, including circular trading and price manipulation, particularly in the shares of small companies amidst the prevailing bullish market sentiment. 

Small company stocks are consistently hitting upper circuit limits on a daily basis.This isn't the first time SEBI has taken action. 

In June, they conducted raids on entities linked to a major market operator involved in front-running trades of foreign portfolio investors (FPIs).

 However, the aftermath of these raids left many puzzled, as SEBI didn't follow up with significant actions.

The regulator had solid information pointing towards brokers and entities manipulating trades of large foreign investors. 

The June raids, despite revealing prima facie evidence, lacked the usual swift and decisive action from SEBI, leaving industry experts bewildered.Stay tuned as SEBI continues its pursuit of market fairness, uncovering and addressing illicit activities within the financial landscape."

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