Securities and Exchange Board of India (SEBI) on Friday confirmed that it had conducted a series of search and seizure operations earlier this month in connection with a suspected “pump-and-dump” stock market scam. The market regulator issued a formal press release to clarify its position following multiple media reports on the matter.
In a brief statement, SEBI announced that its teams carried out the operations at several locations in June 2025. During the raids, officials seized what has been described as “incriminating evidence.”
The regulatory body stated that the action was taken as part of an ongoing investigation into the artificial inflation of prices in certain securities, a practice commonly known as a pump-and-dump scheme.
“It is hereby clarified that SEBI has conducted search and seizure operations at multiple locations in the month of June 2025 in connection with pump and dump in certain scrips and has seized incriminating evidence,” the press release (PR No.34/2025) stated.
SEBI has not disclosed the names of the specific stocks, individuals, or entities under investigation at this stage. The regulator concluded its statement by confirming that the “investigation in the matter is under progress.”
A pump-and-dump scam is a form of securities fraud where manipulators attempt to boost the price of a stock through false, misleading, or exaggerated statements. They typically buy shares of a low-value company and then disseminate positive rumours and hype through social media, messaging apps, or other channels to attract unsuspecting investors. As new investors buy in, the demand pushes the stock price up. The original manipulators then sell, or “dump,” their shares at the artificially high price, reaping significant profits. This selling pressure inevitably causes the stock price to plummet, leaving the remaining investors with substantial losses.
The clarification from SEBI aims to provide an official account of the events and manage speculation surrounding the enforcement action. The ongoing investigation will now proceed based on the evidence collected during the raids.
Securities and Exchange Board of India
PR No.34/2025
Clarification on news reports
Various news reports have appeared in media regarding Securities and Exchange Board of India (SEBI) raids in the matter of pump and dump scam.
It is hereby clarified that SEBI has conducted search and seizure operations at multiple locations in the month of June 2025 in connection with pump and dump in certain scrips and has seized incriminating evidence. Investigation in the matter is under progress.
Mumbai
June 27, 2025
