Sebi targets ‘finfluencer’ misconduct to protect retail investors, freezes accounts of perpetrators

Securities and Exchange Board of India (Sebi) on Friday issued an interim order banning multiple unregistered “finfluencers” and entities from the stock market for running a “pump-and-dump” manipulation racket on social media.

According to the Sebi order, the operators bought small/mid-cap stocks, artificially inflated prices by sharing unsubstantiated bullish tips to followers, and then dumped their shares at a massive profit, leaving retail investors with heavy losses.