Sebi initiates enforcement action against 886 entities in Apr 2024-Jun 2025 for mkt manipulation

Markets regulator Sebi has taken enforcement action against 886 entities during April 2024 to June 2025 for indulging in fraudulent and unfair trade practices in the securities market, Parliament was informed on Tuesday.

Generally, violations, including price and volume manipulation and front-running, come under the ambit of Sebi's Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) norms.

"Securities and Exchange Board of India (Sebi) has taken enforcement action against 886 entities during the period April 01, 2024 to June 30, 2025, for violation of provisions of Sebi (PFUTP) Regulations, 2003," Finance Minister Nirmala Sitharaman said in a written reply to Rajya Sabha.

The markets regulator investigates allegations of mis-statement in financial statements of listed companies. The mis-stated financial statements may have a direct or indirect effect on the prices of securities of such listed companies, resulting in violations of securities law. Based on the findings of the investigation, Sebi takes appropriate enforcement actions against the violators.

On a query regarding details of regulations governing foreign firms trading in Indian markets, the minister said investments by Foreign Portfolio Investors (FPIs) in the Indian securities market are regulated by the Sebi Act, 1992, the Sebi FPIs Regulations, 2019, and the circulars issued thereunder, as well as by the Foreign Exchange Management Act, 1999, and the rules framed under it, including the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, and the Foreign Exchange Management (Debt Instruments) Regulations, 2019.