SEBI Investigates Mahadev App Links to FPI and Price Rigging
Why in the news
The market regulator began examining FPI misuse and price rigging tied to the Mahadev network.
Key facts
- Alleged stock manipulation and routing of betting proceeds through FPIs.
- ED is probing laundering via offshore benami accounts; funds went into promoters’ firms through preferential issues, share sales and warrants.
- Promoters allegedly colluded with accused persons and used agents to inflate valuations.
| ED measure | Figure |
|---|---|
| Assets and cash frozen | Over ₹573 crore |
| Cash seized | ₹3.29 crore |
| Searches | Over 170 |
| Arrests | 13 |
| Prosecution complaints | 5, naming 74 entities |
What next
If FPI rules were breached, action is expected against companies, promoters, directors and FPI intermediaries.
Exam angle
- Agencies: SEBI and ED.
- Routing countries: Dubai, Mauritius.