Markets regulator, Securities and Exchange Board of India (Sebi), has initiated enforcement action against 886 entities during the period from April 1, 2024, to June 30, 2025, for indulging in fraudulent and unfair trade practices in the securities market, the Parliament was informed on Tuesday by the Unione Finance Minister, Nirmala Sitharaman.
In a written reply to the Rajya Sabha, Sitharaman said, “Securities and Exchange Board of India (Sebi) has taken enforcement action against 886 entities during the period April 01, 2024 to June 30, 2025, for violation of provisions of Sebi (PFUTP) Regulations, 2003.”
The markets regulator investigates allegations of mis-statement in financial statements of listed companies, which comprise violations that come under the ambit of Sebi's Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) norms.
The mis-stated financial statements may have a direct or indirect effect on the prices of securities of such listed companies, resulting in violations of securities law. Other violations include price and volume manipulation and front-running.
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Based on the findings of the investigation, Sebi takes appropriate enforcement actions against the violators.
On a query regarding details of regulations governing foreign firms trading in Indian markets, the minister said investments by Foreign Portfolio Investors (FPIs) in the Indian securities market are also regulated by the Sebi Act, 1992, the Sebi FPIs Regulations, 2019, and the circulars issued thereunder, as well as by the Foreign Exchange Management Act, 1999, and the rules framed under it, including the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, and the Foreign Exchange Management (Debt Instruments) Regulations, 2019.
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