- Seven individuals, including Hemant Gupta and family, investigated by SEBI for stock manipulation
- Alleged use of social media platforms like Telegram, WhatsApp, and X to influence retail investors
- Suspected of trading ahead of stock recommendations in small and mid-cap stocks on SME platforms
At least seven individuals have come under the scanner of the Securities and Exchange Board of India (SEBI) for allegedly using social media platforms, including X, to influence retail investors and make profits by trading ahead of recommendations in small and mid-cap stocks.
Those named in the order are Hemant Gupta, Rohan Gupta, Aniket Gupta, Sharon Gupta, Leana Gupta, Rajani Gupta and Purvangi Gupta, according to an enforcement order.
Hemant Gupta, his wife, ex-wife and his four children allegedly used Telegram, WhatsApp and X to manipulate shares of small companies, Reuters reported.
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SEBI alleged that the group shared stock recommendations through social media accounts while taking positions in the same shares before the calls were publicly circulated.
According to the regulator, its surveillance systems detected suspicious trading activity linked to posts promoting stocks, particularly companies listed on SME platforms.
SEBI said the individuals allegedly bought shares in low-liquidity counters before publishing recommendations online and later sold them after retail participation pushed prices higher.
The market regulator carried out search and seizure operations between Jan. 21 and Jan. 24, 2026, after securing court approval. During the searches, electronic devices were seized and statements were recorded.
SEBI examined trading activity spanning December 2023 to January 2026 as part of the probe.
In its interim order, SEBI said the combined gross trade value of the seven entities jumped from Rs 548.62 crore in the earlier period to Rs 1,023.40 crore during the examination period, reflecting an 86% rise.
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The regulator also claimed that the entities' total squared-off profits surged from Rs 17.06 crore to Rs 58.40 crore, marking a 242% increase.
SEBI identified Rohan Gupta and Sharon Gupta among the biggest beneficiaries, allegedly earning combined profits of nearly Rs 50 crore.
The order also highlighted multiple instances where trades were allegedly placed ahead of stock recommendations shared on social media platforms, triggering price spikes in SME and low-float stocks.
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