The Securities and Exchange Board of India (SEBI) has banned seven individuals for allegedly using social media platforms to manipulate small and mid-cap stock trades. According to an enforcement order, those named in the investigation are Hemant Gupta, Rohan Gupta, Aniket Gupta, Sharon Gupta, Leana Gupta, Rajani Gupta and Purvangi Gupta. The regulator carried out search and seizure operations between January 21-24, 2026, after securing court approval, seizing electronic devices and recording statements during the investigation. As per Reuters, Hemant Gupta, his wife, ex-wife and his four children allegedly used Telegram, WhatsApp and X to manipulate shares of small companies, with the group sharing stock recommendations through social media accounts while taking positions in the same shares before the calls were publicly circulated.
SEBI examined trading activity spanning December 2023 to January 2026 as part of the probe. The regulator's surveillance systems detected suspicious trading activity linked to posts promoting stocks, particularly companies listed on SME platforms. According to the enforcement order, the combined gross trade value of the seven entities jumped from ₹548.62 crore in the earlier period to ₹1,023.40 crore during the examination period, reflecting an 86% rise. The entities' total squared-off profits surged from ₹17.06 crore to ₹58.40 crore, marking a 242% increase. The order 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.
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. The regulator claimed the individuals allegedly bought shares in low-liquidity counters before publishing recommendations online and later sold them after retail participation pushed prices higher. According to the enforcement order, the group used Telegram, WhatsApp and X to influence retail investors and profit from small-cap stock trades. The order 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.
SEBI identified Rohan Gupta and Sharon Gupta among the biggest beneficiaries, allegedly earning combined profits of nearly ₹50 crore. The regulator's investigation revealed that the group used Telegram, WhatsApp and X to influence retail investors and profit from small-cap stock trades. The enforcement action represents SEBI's continued efforts to combat insider trading and market manipulation through social media platforms.
