what will sebi do if it finds fraudulent operations of a company in stock market?

If the Securities and Exchange Board of India (SEBI) finds fraudulent operations of a company in the stock market, it can take several actions to address the issue and protect the interests of investors. Some of the actions SEBI may take include:

Investigation: SEBI will conduct an investigation into the alleged fraudulent activity, which may include gathering information, examining records, and interviewing individuals involved.


Enforcement action: Based on the findings of the investigation, SEBI may take enforcement action against the company and any individuals involved in the fraud. This may include imposing fines, revoking licenses, or ordering the company to take specific actions to correct the situation.


Prohibition from the market: SEBI may prohibit the company and its directors from accessing the securities market, including from issuing securities, raising funds from the public or from trading in securities market.


Public warning: SEBI may issue a public warning to investors to exercise caution when dealing with the company and its securities.


Criminal Prosecution: SEBI may refer the matter to the relevant law enforcement authorities for criminal prosecution.


Civil action: SEBI may file a civil suit to recover any ill-gotten gains or to compensate investors who have suffered losses as a result of the fraud.


Compensating the victims: SEBI may take steps to compensate the victims of the fraud, such as by ordering the company to set up a fund to compensate investors who have suffered losses.

It's important to note that the specific actions taken by SEBI will depend on the nature and severity of the fraud and the evidence available. These actions are taken to ensure that the securities market remains fair and transparent for the investors and to maintain the integrity of the market.