SEBI warns against market manipulation practices

Mumbai

SEBI Chairman Tuhin Kanta Pandey has issued a stern warning to market participants, stating that the Securities and Exchange Board of India will adopt a zero-tolerance policy toward market manipulation. Speaking at an industry event in Mumbai, Pandey emphasized that SEBI will take stringent action against any attempt to distort market dynamics.

“We will continue to watch. On market manipulation, we will come down very hard going forward. We’ve acted strongly in the past, and we’ll be even more aggressive now,” Pandey asserted. His comments come amid increasing concerns about irregularities in Small and Medium Enterprises (SME) IPOs. SEBI has already taken action in several cases involving inflated subscriptions, misleading disclosures, and fund diversion. In some instances, IPO launches have been paused to protect investors.

Beyond SMEs, SEBI is also probing pump-and-dump schemes in the secondary market, where investors are lured into buying stocks based on false hype. Derivative trading, particularly in index options, has also come under scrutiny for manipulation. Referring to high-profile cases like that of Gensol Engineering, Pandey pointed out that regulation alone cannot curb greed-driven misconduct. “Greed has been part of human nature since ancient times. More compliance is not the answer—effective enforcement and timely intervention are.”

In April, SEBI barred Gensol Engineering’s promoter, Anmol Singh Jaggi, from the markets for misusing public sector NBFC loans and manipulating share prices. Reassuring investors, Pandey concluded, “Even if such cases are happening now, offenders will be caught and face consequences.” SEBI remains committed to upholding market integrity.