Capital markets regulator Sebi investigated 402 cases for securities law violations during 2025-26, according to its latest annual report. The regulator completed investigations in 338 cases during the financial year, demonstrating active enforcement of securities laws. Fraudulent and unfair trade practices saw 121 cases taken up for scrutiny, with 94 investigations completed. Insider trading and illegal trade practices accounted for 224 investigations initiated, with 204 cases completed. Financial statement fraud also came under regulatory focus with 57 cases taken up and 40 cases completed during the fiscal.
Within fraudulent and unfair trade practices, Sebi initiated investigations into 72 cases of price and volume manipulation, up from 61 cases in the preceding fiscal. The regulator completed 43 such cases during the year. Additionally, 49 front-running cases were taken up for investigation in 2025-26, compared with 44 cases in the previous year. Sebi completed investigations in 51 front-running cases during the year. The regulator's investigating authority examines evidence including order and trade logs, transaction statements, depository and KYC data, bank records, company financial results and shareholding patterns, corporate developments and call data records.
Sebi and stock exchanges stepped up surveillance of market intermediaries in 2025-6, carrying out inspections covering more than 900 stock brokers during the year. Sebi, along with exchanges, conducted 179 inspections of 106 brokers during the fiscal, comprising 162 thematic inspections and 17 comprehensive inspections. Separately, stock exchanges carried out 973 inspections covering 822 brokers across various market segments. The regulator initiates investigations based on inputs from various sources, including market surveillance, exchange reports, complaints and media reports.
