4,000 investors duped in ‘pump-and-dump’ scheme operated from Ahmedabad, SEBI probe on

The Securities and Exchange Board of India is currently investigating a number of pump-and-dump schemes involving revival of defunct BSE companies operating from Ahmedabad that have duped  around 4,000 investors, according to people familiar with the matter.

The Securities and Exchange Board of India (SEBI) is investigating pump-and-dump schemes run in Ahmedabad, where investors are duped in the name of now-defunct BSE companies, according to a report.

Around 4,000 investors have been duped through the schemes, NDTV Profit reported.

The pump-and-dump schemes refer to an unethical practice of scammers making investors believe in some particular stocks, prompting them to buy. This jacks up  the prices of those stocks, and when that happens, scamsters sell their shares for profits, while the investors lose their money.

As per the reports that cited sources, SEBI has seized mobile phones of several accused individuals and is currently going through the data.

In a recent statement on June 27, a SEBI statement said, “Various news reports have appeared in the media regarding Securities and Exchange Board of India (SEBI) raids in the matter of pump and dump scam.”

“It is hereby clarified that 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 evidence,” it added.

Investigation into the matter is in progress, informed the market watchdog.