A massive stock market scam has come to light involving the alleged manipulation of defunct BSE-listed companies based in Ahmedabad. According to a media report, the scheme has reportedly duped nearly 4,000 investors through fraudulent trading practices, prompting a probe by the Securities and Exchange Board of India (SEBI).
The Securities and Exchange Board of India (SEBI) is investigating a large-scale pump-and-dump scam linked to the revival of nearly defunct companies. These schemes allegedly misled investors into buying shares of low-value firms whose prices were then artificially inflated. Once prices surged, the manipulators reportedly exited, leaving retail investors to suffer steep losses.
As part of its ongoing investigation, SEBI has seized mobile phones and electronic devices from several individuals believed to be involved.
In a statement issued on June 27, SEBI confirmed that it had conducted “search and seizure operations at multiple locations” earlier in the month in connection with pump-and-dump activity in specific scrips.
“These operations have led to the recovery of incriminating evidence,” SEBI stated, adding that the investigation is actively underway.
Pump-and-dump scams involve artificially inflating stock prices using misleading claims or trading patterns to attract retail investors. Once the price peaks, the manipulators exit with profits, and the stock crashes—leaving small investors with significant losses.