Market manipulation is overrated

The affair of a well-known TV pundit running a stock pump-and-dump racket has generated predictable outrage. SEBI has accused this television regular, who also commands a substantial social media following, of orchestrating a classic manipulation scheme, allegedly pocketing Rs 11.37 crore by buying stocks, recommending them on air, and then selling once his media appearances inflated prices. Add to this BSE's recent Rs 25 lakh fine for giving certain users early access to corporate announcements, and you have what appears to be a damning indictment of market integrity. Except it isn't. What these cases demonstrate is precisely the opposite: that India's markets are remarkably well-regulated and that manipulation schemes, however cleverly constructed, have a limited shelf life. Suggested read: The old-fashioned art of the scam Consider this: Sanjiv Bhasin’s case. SEBI's investigation, triggered by complaints in late 2023, covered a four-and-a-half-year period from January 2020 to June 2024. The regulator didn't just slap together a quick order based on rumours. It conducted a thorough investigation, analysed trading patterns across many entities, traced the flow of funds, and produced a 149-page order that reads like a financial thriller. The manip