Pump-and-dump case: Sebi raids many shell cos

MARKETS watchdog Sebi has confirmed reports that appeared in a section of the media that it had carried out raids across multiple locations and shell companies for what it considers to be cases of pump-and-dump scams.

- BENN KOCHUVEEDAN @Mumbai

"Sebi has conducted search and seizure operations at multiple locations in June in connection with pump and dump in certain scrips and has seized incriminating evidence," Sebi said in a statement on Friday.

"Further investigation in the matter is under progress," it added, without offering more details such as the number of companies raided or the value of the alleged scam etc.

Some reports suggested Sebi raided about two dozen shell companies involved in ₹300 crore pump-and-dump scheme across Ahmedabad, Mumbai and Gurugram. These raids are one of the biggest in Sebi's history in terms of monetary value. The raids mainly involved 15-20 shell companies, which were allegedly created by promoters of some listed companies to pump-and-dump their own shares. At least two listed agro-tech companies, along with their promoters, are said to be at the helm of the alleged network, sources had said.