Enforcement Directorate (ED) officially announced that it has conducted searches at eight locations in Mumbai and Chennai as part of a money laundering investigation. The case involves an alleged investment fraud where a cartel sold fake “unlisted” shares of NSE India Ltd. to unsuspecting investors.
The raids, carried out by the ED’s Headquarters Investigation Unit under the Prevention of Money Laundering Act (PMLA), targeted a group that allegedly exploited the high demand for NSE shares ahead of its anticipated IPO.
The “Phantom Share” Modus Operandi
Investigators uncovered a sophisticated “pump and dump” style racket that operated by misrepresenting ownership of the exchange’s private shares.
- False Claims: The accused individuals allegedly approached wealthy investors and retail groups, claiming they possessed a significant block of NSE shares that could be transferred through private “Share Purchase Agreements” at a premium.
- Lack of Possession: The ED stated that the cartel did not actually own the shares they were offering to sell.
- Regulatory Blind Spot: Since NSE India is currently unlisted, its shares do not trade on regulated platforms like the NSE or BSE. The accused exploited the lack of formal exchange settlement mechanisms in the private market to collect large advance payments from investors.
Entities and Individuals Under Investigation
The ED has named several firms and their directors in its formal probe:
| Entities Targeted | Key Individuals Named |
| Atum Capital Pvt Ltd | Satish Kumar |
| Optimus Financial Solutions Pvt Ltd | Sanjay Damani |
| Babli Investment Pvt Ltd | Neeraj Nisar |
| Supremus Angel | Krish Vohra, Manish Soni, Nisha Kumari |
Asset Freezes and Seizures
During the raids on February 27 and March 5, officials recovered a trove of incriminating evidence.
- Frozen Accounts: The ED has frozen several bank and demat accounts linked to Satish Kumar and Sanjay Damani under Section 17(1A) of the PMLA, citing evidence of “proceeds of crime.”
- Diversion of Funds: Investigators found that the money collected from investors was routed through multiple “mule” bank accounts and subsequently diverted into both movable and immovable assets, including property purchases.
- Digital Records: Hundreds of digital documents and property papers were seized to trace the final destination of the laundered funds.
Context: The NSE IPO “Gold Rush”
The fraud has been fueled by the massive surge in interest for NSE’s unlisted shares. In the unofficial market, prices have swung wildly between ₹1,625 and ₹2,400 in recent months as the exchange nears its IPO filing (targeted for late March 2026).
Caution for Investors: Market participants and the ED have issued a stern warning that investors should verify a seller’s actual shareholding through demat records (NSDL/CDSL) before entering into any private share transactions.
