World · India Bureau
ED raids six cities in alleged stock manipulation fraud probe
The Enforcement Directorate has launched coordinated raids across six cities targeting an alleged pump-and-dump scheme involving two companies. Trading accounts worth approximately Rs 200 crore have been frozen as part of the investigation.
LSN India ·
The Enforcement Directorate (ED) conducted simultaneous raids at 29 locations across six cities on Tuesday as part of an investigation into an alleged stock manipulation fraud involving two companies, officials said. The operation focused on uncovering a purported pump-and-dump scheme allegedly orchestrated through WhatsApp messaging platforms.
During the raids, ED officials froze trading accounts collectively valued at around Rs 200 crore. The action marks an escalation in the federal agency's crackdown on illegal financial activities in the securities market.
Pump-and-dump schemes typically involve artificially inflating stock prices through misleading information before selling shares at inflated valuations, leaving retail investors with substantial losses. The use of encrypted messaging platforms for coordinating such activities has emerged as a growing concern for financial regulators.
The ED investigation comes amid heightened scrutiny of market manipulation tactics and unauthorized trading practices. Securities market participants have been increasingly targeted by enforcement agencies for violations of stock trading regulations and investor protection norms. The agency's action reflects efforts to strengthen market integrity and protect retail investors from fraudulent schemes.