SEBI probes pump and dump scam; finds 'incriminating' evidence

New Delhi: Markets watchdog SEBI on Friday said it has seized "incriminating evidence" in the pump and dump scam involving shares of various companies during search operations conducted this month.

Without disclosing specific details, the Securities and Exchange Board of India (Sebi) said as part of probing the scam, search and seizure operations were carried out at multiple locations.

In a pump and dump scheme, fraudsters typically spread false or misleading information to create a buying frenzy that will "pump" up the price of a stock and then "dump" shares of the stock by selling their own shares at the inflated price. Once the fraudsters dump their shares and stop hyping the stock, the stock price typically falls and investors lose money.

In a statement, Sebi said it 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 evidences.

"Investigation in the matter is under progress," it added.

SEBI has been intensifying its crackdown on pump and dump operations in recent months, following a rise in such schemes being perpetrated through social media, messaging, and video-sharing platforms.