SEBI Targeted 886 Entities During April 2024-June 2025 for Fraudulent Trading Practices

SEBI has taken enforcement action against 886 entities between April 2024 and June 2025. These actions were taken for involvement in fraudulent and unfair trade practices in the securities market. These violations fall under the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (PFUTP). Their objective is to protect investors and ensure fair play in the securities market.

SEBI Scrutinised Common Violations by FPIs

The most common offences included:

• Price manipulation: Artificially raising or lowering stock prices
• Volume manipulation: Falsifying the number of shares being traded
• Front-running: Trading based on advance knowledge of large upcoming orders from clients or firms

Such activities mislead investors and harm the trust in financial markets.

SEBI To Act Against Misleading Financial Statements

SEBI  also investigated cases where companies give false or misleading financial statements. This is because these misrepresentations could impact the price of company shares. If SEBI finds that laws have been violated, it takes strict action against those involved. This helps maintain transparency and protects investors from being misled.

Rules for Foreign Investors

As per a written reply of India’s Finance Minister in the Parliament, Foreign Portfolio Investors (FPIs) trading in Indian stock markets must follow several rules including:

• SEBI Act, 1992
• SEBI (FPI) Regulations, 2019
• Circulars issued by SEBI
• Foreign Exchange Management Act (FEMA), 1999
• FEMA rules like the Non-Debt Instruments Rules, 2019 and Debt Instruments Regulations, 2019

These rules ensure that foreign investments are made responsibly and within the legal framework.

Read more: SEBI Extends Deadline for New Margin Pledge System to October 10, 2025.

Conclusion

SEBI’s enforcement actions show a strong commitment to keeping India’s financial markets clean and trustworthy. By cracking down on unfair trade practices and false financial reporting, SEBI is working to protect investors and promote fair play. The strict rules for both domestic and foreign investors help ensure that the Indian securities market remains transparent and well-regulated.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.