The Enforcement Directorate has frozen 200 crore rupees held in various trading accounts following widespread searches across Maharashtra and Gujarat, according to reporting by Accredited Wire Reports. The enforcement action targeted 29 separate premises in connection with an investigation into an alleged market manipulation scheme.
Investigators initiated the coordinated operations after identifying suspected illicit activity tied to an alleged "pump and dump" share manipulation scam. The targeted mechanism typically involves artificially inflating share prices through coordinated, misleading transactions or promotional campaigns, allowing operators to offload their holdings at elevated levels to the detriment of unsuspecting retail participants.
Coordinated Multi-State Searches
Search teams deployed simultaneously across multiple locations in Maharashtra and Gujarat to secure evidence and prevent the dissipation of illicit gains, according to reporting by Accredited Wire Reports. By searching 29 premises, the federal agency sought to uncover the operational infrastructure supporting the alleged manipulation network.
During the course of the multi-city operation, officials moved to freeze approximately 200 crore rupees parked in designated trading accounts linked to the suspect transactions. The freezing order aims to halt further financial transactions within the targeted demat and brokerage accounts while investigators analyze trade books and transaction histories.
Investigation Into Share Manipulation
The probe focuses on tracking the origin of funds channeled through domestic trading desks and establishing the identities of the primary beneficiaries behind the alleged price distortion. Regulatory scrutiny over suspected equity manipulation has intensified, with authorities focusing on coordinated trading rings that distort fair price discovery across Indian bourses.
Enforcement Directorate officials are continuing their scrutiny of financial records, communication logs, and trading ledgers gathered during the raids across both states to map the entire scope of the operation.
