The Enforcement Directorate (ED) conducted raids in Mumbai, Ahmedabad, and other cities this week in connection with an alleged ₹200 crore pump-and-dump share manipulation case, according to livemint.com. The operation targeted multiple locations linked to the suspected scheme, which involved artificially inflating stock prices to mislead investors.
The raids followed a detailed investigation into suspicious trading activities over recent months. ED officials seized documents and electronic devices to gather evidence of coordinated efforts to manipulate share prices. The agency is probing the roles of several individuals and entities believed to have orchestrated the scheme, aiming to recover illicit gains and hold perpetrators accountable.
Pump-and-dump schemes have been a recurring concern in Indian capital markets, undermining investor confidence and market integrity. This case, involving ₹200 crore, is among the larger recent instances of alleged market manipulation. Regulatory bodies have intensified scrutiny of such activities, with the Securities and Exchange Board of India (SEBI) also actively pursuing enforcement actions against offenders.
The ED's investigation is ongoing, with further raids and summons expected as the agency builds its case. The agency has not disclosed the names of the accused or the specific stocks involved. The probe marks a significant step in addressing market manipulation, with authorities emphasizing the importance of safeguarding investor interests.