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ED Raids 29 Premises and Freezes Rs 200 Crore in Stock Manipulation Crackdown
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Moneycontrol•19-10-2026, 17:46
ED Raids 29 Premises and Freezes Rs 200 Crore in Stock Manipulation Crackdown
- •The Enforcement Directorate searched 29 premises across six cities as part of a money laundering probe into share price manipulation of R M Drip and Sprinklers Systems Ltd and R&B Denims Ltd.
- •Trading accounts worth approximately Rs 200 crore have been frozen by the agency following the operation conducted under the Prevention of Money Laundering Act.
- •Investigators revealed that select persons received preferential share allotments, which were later artificially inflated using promotional WhatsApp groups to target retail investors.
- •The number of retail investors in the two targeted stocks surged from around 3,400 to over one lakh within a short timeframe before operators offloaded their holdings.
Key Questions Answered
The Enforcement Directorate conducted searches across 29 premises in six cities on October 16, 2026, and froze trading accounts worth approximately Rs 200 crore.
The money laundering probe centers on the alleged manipulation of shares belonging to R M Drip and Sprinklers Systems Ltd and R&B Denims Ltd.
Between late December 2025 and February 2026, WhatsApp groups like 'Multibagger Stocks' circulated daily buy recommendations to retail investors, causing investor numbers to surge before operators sold their holdings.
