 "SEBI")
A pump and dump scheme refers to the inflation of the price of a stock through manipulative trades executed through a nexus or connected entities, and later offloading the shares at higher prices to unsuspecting public investors
The Securities and Exchange Board of India (Sebi) has barred 17 entities and individuals from the securities market for five years and two others for three years each for allegedly operating a pump and dump scheme in Superior Finlease through misleading recommendations via Telegram channels.
“This order serves as a message that such manipulative practices by interested parties will be met with appropriate action. Investors are urged to exercise due diligence and caution, especially while investing in companies which see sudden spikes in prices without any attributable change in fundamentals,” Ashwani Bhatia, whole-time member of Sebi, wrote in the order.
A pump and dump scheme refers to the inflation of the price of a stock through manipulative trades executed through a nexus or connected entities, and later offloading the shares at higher prices to unsuspecting public investors. The public investors later get stuck with the stock at a higher purchasing price while the share price cools down after the operators exit.
First Published: May 22 2024 | 9:00 PM IST
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