Enforcement Directorate Freezes ₹200 Crore in Share Manipulation Raids
· Business · LiveMint, Indian Express
The Enforcement Directorate froze ₹200 crore in trading accounts during searches across 20 locations in Maharashtra and Gujarat. The raids on October 16 targeted Nashik, Mumbai, Ahmedabad, Gandhinagar, Surat, and Bhavnagar under the Prevention of Money Laundering Act. Investigators seized incriminating documents, digital devices, and property records from promoter residences and stock-broking offices. The probe revealed that two companies issued over 3.5 crore shares and convertible warrants between April 2023 and March 2024 to connected entities to artificially inflate prices. Promotional messaging groups operating from Bhavnagar used Haryana and Mumbai SIM cards to circulate daily buy tips to retail investors.
Why it matters
The crackdown exposes coordinated pump-and-dump stock scams that target retail investors through social media messaging groups.
Read the original report — LiveMint
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