capital market regulator Securities and Exchange Board of India (SEBI) has conducted search and seizure operations at multiple locations across India to detect malpractices in the market, according to an official statement.
In continuation of efforts to detect market malpractices, SEBI today conducted search and seizure operations at the premises of 7 individuals and 1 corporate entity at various locations in Ahmedabad and Bhavnagar in Gujarat, Neemuch in Madhya Pradesh, Delhi and Mumbai, SEBI. said in a statement.
During the search and seizure operation, the officials seized various records and documents including 34 mobile phones, 6 laptops, 4 desktops, 4 tablets, 2 hard drive discs and 1 pen drive from the custody of these persons.
SEBI said that these entities are operating 9 Telegram channels with over 5 million subscribers, for whom they were making recommendations on selected listed shares, while such recommendations prompted investors to deal in the said shares. which led to artificial volume and price increases. ,
This provided an opportunity for their associated entities to offload their shares at higher prices and make significant profits at the expense of unsuspecting retail investors, it said.
Data, emails and other documents are being obtained from the seized devices and detailed investigation is on.
SEBI was informed that messages containing stock tips and other investment advice in respect of select listed companies are being widely circulated through websites and social media platforms.
In this backdrop, the regulator has once again cautioned investors not to rely on such investment suggestions received through social media platforms. “It is also advised that investors should exercise extreme caution in making investment decisions when dealing in the securities market.”
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