On 10th March, Indian market regulator SEBI conducted search and seizure operations in multiple locations such as Bhavnagar, Ahmedabad, Delhi and Mumbai to reveal and stop market misconduct.
SEBI recovered several electronic devices from the custody of these persons. These people were operating 9 Telegram accounts with over 5 million followers. They were giving stock tips and investment advice to their followers which would artificially increase the volume of trade and, therefore, the price of the stock.
The data, emails and other documents retrieved from these persons is being investigated in great detail, according to SEBI. A similar scam was cracked down by SEBI in January wherein it imposed a fine of Rs 2.84 crore on the six individuals apprehended. All these fraudsters give stock tips to artificially inflate prices of stocks wherein they already have positions, dump their shares and leave investors in severe loss.
As a reminder, SEBI has requested everyone to exercise caution and not to readily believe strange people giving financial advices on any scial media platform.
Highlight by Aman Agarwal.