200 companies under SEBI’s scanner amid probe into alleged pump-and-dump schemes

The Securities and Exchange Board of India (SEBI) is ramping up efforts to combat market manipulation, initiating a large-scale investigation into alleged pump-and-dump operations in the Indian stock market. Nearly 200 listed companies are under scrutiny for purportedly inflating stock prices before selling shares to unsuspecting investors, according to a report by NDTV Profit. This development underscores SEBI's commitment to maintaining market integrity.

In a significant move, SEBI has executed search operations across more than 80 locations over the past three days. The regulator has confiscated data from over 100 computers and 150 mobile phones, illustrating the extensive digital investigation involved. SEBI's comprehensive actions form part of a broader campaign initiated over several months to protect investors' interests. "It is hereby clarified that SEBI 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 evidence. Investigation in the matter is under progress."

Jane Street case

Jane Street, a global trading firm, faces accusations from SEBI for manipulating the Bank Nifty index through strategic purchase and sale activities, allegedly securing substantial profits at the expense of retail investors. This action against Jane Street has sent shockwaves through the Indian trading community, highlighting the scale and seriousness of SEBI's enforcement efforts.

SEBI's interim order has banned Jane Street from trading in the Indian markets. The firm, however, is poised to challenge SEBI's findings. Kinjal Champaneria, Partner at Solomon & Co., explained the legal options available: "As per SEBI’s order dated 3rd July 2025, SEBI has imposed several conditions and have sought further information from the entities. These include deposit of amounts, details of trades, details of assets etc. Considering the principles of natural justice, the entities have 21 days to submit their replies or objections and may request a personal hearing."

Abhiraj Arora, Partner at Saraf & Partners, outlined Jane Street's strategic decision-making process: "Jane Street faces an immediate strategic dilemma: should they use the 21-day window to file a reply and argue before the SEBI Whole Time Member (WTM), or should they immediately file an appeal before the Securities Appellate Tribunal (SAT)?"

Arora further elaborated on the legal strategy: "They should file a detailed reply with WTM within the stipulated 21 days. This demonstrates compliance with the regulatory process and is their first opportunity to formally rebut the allegations on record. Alternatively, given the severity of the complete cessation of business and impounding of over ₹4,800 crore, they would likely file an appeal with SAT immediately."

SEBI's chairman, Tuhin Kanta Pandey, reaffirmed the regulator's stern approach towards market manipulation, stating, "Surveillance has been increased both by the regulator and also at the exchange level." This emphasis on heightened vigilance reflects SEBI's resolve to bolster investor confidence and uphold market standards.

The unfolding cases of the alleged pump-and-dump schemes and the high-profile Jane Street incident are being closely monitored by industry insiders, given their significant implications for regulatory practices and market confidence in India's financial markets. As SEBI continues its rigorous scrutiny, the outcomes could reshape the landscape of regulatory enforcement and market operations.