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HomeMarketBig news for those investing in the stock market, SEBI took strict...

Big news for those investing in the stock market, SEBI took strict steps

SEBI has taken this action in the case of defrauding small investors through artificial demand in shares. There are allegations that through this fraud, these operators have made lakhs of rupees in each transaction.

SEBI action on stock brokers

The year 2021 has been a year of record boom for the stock market, during which the major indexes saw levels which have never been recorded before today. Investors made a lot of money in this record boom of the market, although in the hope of this high return, many small investors also recorded significant losses at the hands of stock operators who manipulated the market. SEBI has tightened the noose on some such stock market operators. According to reports, the market regulator also conducted raids against some operators of Gujarat.

SEBI action on stock brokers

SEBI has taken this action in the case of defrauding small investors through artificial demand in shares. There are allegations that through this fraud, these operators have made lakhs of rupees in each transaction. In the investigation of SEBI, many messages related to the buying and selling of shares by these operators have come to the fore. Since the use of social media by operators is increasing for manipulation of share prices, SEBI is also tightening its noose on the wrongdoings done through this route. Such operators mostly target small investors. The delivery of trading tips to new investors is mostly done through WhatsApp groups and Telegram channels.

Manipulating investors with pump and dump technology

In fact, in view of the high returns received in the stock market and the increasing participation of retail investors, many such stock operators also became active in the stock market, who were controlling the prices arbitrarily through artificial demand in the shares. As per the strategy, such operators first used to buy the shares at cheap prices, after which in the name of trading tips, through social media, WhatsApp groups and Telegram channels, they used to create a positive environment for these shares. With the increase in the participation of small investors, these operators used to sell all their shares and exit the market when the stock boom increased, and the small investors had to bear the loss. In view of this, SEBI has tightened its grip on such operators.

Let us tell you that to protect the interests of small investors, SEBI is preparing to change the rules of IPO. According to the information received by SEBI, through arbitrary jump in the stock prices, the stock operators have earned lakhs of rupees in each transaction.

Also read- Buying a house in Noida will be cheaper! Know how much the price will be reduced from the registry on the carpet area

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