Sebi Warns Against SME Share Manipulation

Sebi has recently cautioned investors against the manipulation of share prices by some SME companies. These firms create an unrealistic picture of their operations to induce purchases of their securities. Investors are advised to be cautious and avoid making decisions based on unverified information from social media or rumors.

Sebi has sounded an alarm for investors regarding share price manipulation by certain SME companies. These companies are accused of projecting inflated views of their operations to attract investors.

A public statement by Sebi indicates that these firms often follow up with corporate actions like bonus issues and preferential allotments to create a positive sentiment, eventually allowing promoters to sell their shares at elevated prices.

Sebi has urged investors to exercise caution and not rely on unverified social media posts and rumors when investing in these securities. Recent orders illustrate a consistent pattern of manipulation in SME listings.

(With inputs from agencies.)