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Under the Sebi Act, the regulator has the power to carry out search and seizure of books, registers, documents including electronics and digital devices from any person associated with the securities market. This ability to mix the public and the private, as well as the ability to use bots to engage with users has proved to be problematic. In early 2021, a database selling phone numbers pulled from Facebook was selling numbers for $20 per lookup. Similarly, security researchers found a network of deepfake bots on the platform that were generating images of people submitted by users to create non-consensual imagery, some of which involved children. In December 2021, Sebi officials had conducted a search and seizure operation at the premises of certain persons carrying out similar manipulative activities through Telegram channels. 'Wild West' This provided opportunity to their linked entities to offload their shares at higher prices and make significant profits at the cost of unsuspecting retail investors.
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