Sebi cracks down on bulk SMS scam, bars 135 entities from securities market

The Securities and Exchange Board of India (Sebi) has restrained 135 entities from accessing the securities market and directed them to impound around Rs 126 crore of wrongful gains from alleged market manipulation done through bulk SMSes.

The alleged manipulators first increased the price and volumes of five microcap companies through influencer entities and then circulated bulk messages with buy recommendations to public investors to lure them. Later, the players sold their previously acquired holdings in these companies at higher prices and booked profits.