The Securities and Exchange Board of India conducted search and seizure operations against 89 entities across 71 locations in 18 cities during FY25, as part of its intensified crackdown on market manipulation. According to SEBI’s Annual Report, the inspections targeted 24 mutual funds and their Registrar and Transfer Agents, along with 13 portfolio managers. Off-site monitoring of mutual funds was powered by algorithm-based alert systems, reflecting SEBI’s increasing reliance on technology-driven surveillance.
The regulator’s inspection drive also covered 312 stock brokers, 90 depository participants, 51 merchant bankers, 56 RTAs, 207 investment advisers, 149 research analysts, eight credit rating agencies, 11 debenture trustees, seven designated depository participants, seven custodians, and three KYC registration agencies. To strengthen its investigative capabilities, SEBI established a technology lab in FY24 equipped with cutting-edge tools. In FY25, the lab added multiple new data sources and analytics platforms, significantly improving the speed, accuracy, and depth of data analysis. These tools have enabled SEBI to identify connections among entities violating securities market laws with greater precision and reduced manual effort.
A Market Intelligence portal was launched in May 2024 to allow market participants to submit inputs related to market abuse. SEBI also extended its Enhanced Surveillance Measures framework to stocks listed on both the mainboard and SME segments with market capitalisation below Rs 1 billion. In response to abnormal price movements in PSU stocks, major surveillance frameworks were expanded to include PSU counters.
To prevent misuse of client funds by intermediaries, SEBI mandated direct pay-out of securities to clients’ demat accounts. It also introduced a framework to facilitate safer participation of retail investors in algorithmic trading through brokers and required qualified stock brokers to offer ASBA-like facilities in secondary markets. Regulated entities have been instructed to disassociate from unregulated platforms that offer advice, recommendations, or unverified claims about returns and performance. SEBI issued cautionary advisories against transacting on unauthorised virtual trading platforms, unregistered online platforms offering unlisted debt securities, and investing in securities listed on the SME platform.
SEBI Chairperson Tuhin Kanta Pandey stated that the regulator’s outlook remains anchored in trust and committed to protecting investors while supporting India’s vision for 2047. He affirmed that SEBI will continue to pursue a proactive and forward-looking regulatory approach guided by the principles of trust, transparency, teamwork, and technology.
