SEBI Chief Tuhin Kanta Pandey Warns of Tough Action Against Market Manipulators

SEBI Chairman Tuhin Kanta Pandey issued a clear warning to market participants, stating that manipulation in the capital markets will not be tolerated, Moneycontrol reported. Speaking at an event in Mumbai, Pandey said the regulator will continue to closely monitor activity and act decisively where needed.

“On market manipulation, we will come down very hard going forward. We have acted firmly in the past as well, but this will remain a key focus area,” he said.

Pandey’s remarks come amid increased scrutiny of SME IPOs, where SEBI has recently passed multiple orders flagging fund diversion, inflated subscription figures, misleading disclosures, and other irregularities. In several instances, issuers have been directed by SEBI and exchanges to defer their public offerings as a precautionary measure.

The regulator is also investigating complaints of pump-and-dump schemes targeting retail investors, along with suspected manipulation in derivative trades, particularly index options.

Addressing such incidents, Pandey acknowledged that regulatory tools have their limitations. “Nobody can guarantee that egregious behaviour will not occur. Greed has been a constant through history. These things don’t happen due to a lack of regulation but despite tough rules being in place,” he said.

Furthermore, he also cautioned against over-reliance on additional compliance burdens, stating that excessive regulation could adversely affect legitimate businesses. “More layers of disclosure may not necessarily solve the problem and could end up creating hurdles for those operating within the law,” he added.

However, he still reiterated that enforcement remains a top priority. “There may be cases currently under the radar, but they will be identified, and those responsible will face consequences,” Pandey said.

Since taking over as SEBI chief earlier this year, Pandey has prioritised measures aimed at improving the ease of doing business in capital markets, while holding a firm stance on enforcement.