By Jayant M. Thakur, Chartered Accountant
BACKGROUND
SEBI, on 25th January, 2023, passed a detailed interim order (in the matter of Superior Finlease Ltd) against persons allegedly involved in market manipulation through the popular messaging app, Telegram. This followed several search and seizure operations conducted about a year ago at multiple locations where SEBI seized, amongst other things, mobiles, hard disks, etc. SEBI found that a well-organized scam using the age-old “pump and dump” method was being carried out with illicit gains of Rs. 3.89 crores generated. SEBI carried out an elaborate and methodical investigation to join the various dots together. This revealed several interesting facts and issues, legal and otherwise. While such scams are regularly seen and even predictable now in their pattern, this was perhaps one unique case where the bare bones of the modus operandi were exposed in detail. SEBI carried out searches that enabled it to get its hands on mobile devices which contained lurid and explicit details of the scam.
At the outset, though, it must be emphasised that this was an interim order. Interim orders are usually passed in cases where the regulator cannot wait for the investigation and further proceedings to be wholly completed and only final orders are passed. Waiting a long time may not only mean that the scam could go on, but the illicit profits may also be dive
