In a decisive move to uphold market integrity, the Securities and Exchange Board of India (SEBI) has penalized 221 entities involved in a sophisticated pump-and-dump scheme. The regulator has banned these parties from trading activities for periods reaching up to seven years.
At the center of the investigation is Hanif Shekh, identified as the primary architect behind the manipulation. Shekh has been hit with a severe monetary penalty of Rs 10 crore. The illicit operation, which ran from 2017 to 2020, successfully targeted five specific stocks to artificially inflate valuations.
The scheme preyed on unsuspecting retail investors, leading to a staggering Rs 143.79 crore in unlawful profits. By creating a facade of high trading volume and surging prices, the group lured victims into buying overvalued shares before offloading their own positions.
SEBI’s enforcement action serves as a stern warning against market abuse. The regulator continues to leverage advanced surveillance techniques to track irregular trading patterns and protect the broader financial ecosystem from bad actors.
