Capital markets regulator Sebi has barred seven individuals from securities markets for allegedly running a coordinated pump-and-dump scheme across social media platforms and making unlawful gains of over ₹20.25 crore. According to reports from Business Standard, The Hindu BusinessLine, Devdiscourse, Mint, and ET Now, the regulator passed a 234-page interim order on May 22 detailing the comprehensive investigation findings. The banned individuals include Hemant Gupta, Rohan Gupta, Aniket Gupta, Sharon Gupta, Leana Gupta, Rajani Gupta, and Purvangi Gupta. Four other family members – Sharon, Leana, Rajani and Purvangi Gupta – allegedly facilitated the operation by allowing the use of their trading accounts or by executing trades on the operators' instructions, as detailed in SEBI's order. As reported by Mint, this case highlights the growing concerns about unregulated, freely available financial advice on various digital platforms and calls for better understanding of equity investment principles among new investors.
As reported by Business Standard, The Hindu BusinessLine, Devdiscourse, Mint, and ET Now, Sebi alleged that Hemant, Rohan and Aniket acted as 'Operators' who first accumulated positions in thinly traded SME stocks and later circulated bullish stock recommendations on social media platforms to inflate prices, before selling their holdings at a profit. Rohan and Aniket posted bullish updates on their X handles, '@WealthSolitaire' and '@desiwallstreet', while Hemant amplified these recommendations across several WhatsApp and Telegram groups, often adding explicit target prices and deliberately keeping such communications off X to avoid regulatory scrutiny. SEBI's Whole Time Member Kamlesh C Varshney noted in the order that the operators by posting stock recommendations on various scrips on their X Accounts and social media platforms induced the general public to deal in the securities purely based on misleading and unsolicited stock tips. According to Mint, the scam was carried out through a planned modus operandi where the accused first accumulated large quantities of SME stocks with very low liquidity, then created coordinated purchasing and selling among themselves to create fake trading activity, and finally spread aggressive buy-now messages across multiple equities to target prices and convince innocent buyers.
According to Business Standard, The Hindu BusinessLine, Devdiscourse, Mint, and ET Now, the combined gross traded value of the seven individuals rose 86 per cent from ₹548 crore in the pre-examination period to ₹1,023 crore during the examination period. Their total squared-off profits surged 242 per cent to ₹58.40 crore. Among them, Rohan and Sharon Gupta emerged as the biggest beneficiaries with profits of ₹50.03 crore. The regulator noted that the Gupta family made wrongful gains exceeding ₹20.25 crore from the pockets of innocent investors who followed stock recommendations circulated on social media platforms. The scheme involved 82 scrips during the examination period from December 1, 2023, to January 20, 2026. As reported by Mint, the scam exploited investors' fear of missing out (FOMO) and their tendency to chase returns in illiquid equities, leaving late investors with serious losses.
As reported by Business Standard, The Hindu BusinessLine, Devdiscourse, Mint, and ET Now, Sebi has also directed finfluencer Hemant Gupta and his sons, Rohan Gupta and Aniket Gupta, to immediately cease and desist from offering unregistered research analyst services or from portraying themselves as research analysts. The regulator observed that Hemant, Rohan and Aniket were not registered as research analysts but were providing services to a large number of subscribers and misleading them to deal in the securities market on the basis of stock analysis. SEBI directed the Gupta family to jointly and severally impound unlawful gains of over ₹20.25 crore and restrained them from buying, selling or dealing in securities directly or indirectly, with immediate effect. The regulator noted that the on-going investigation has prima facie highlighted the scheme and device orchestrated intricately by noticees whereby the operators enabled beneficiaries to liquidate their holdings at an inflated price. According to Mint, this case serves as a strong reminder that financial markets reward discipline, patience and long-term investing, while financial markets do not reward speculation driven by social media noise.
As highlighted by Mint, this ₹20-crore SME scam involving unregistered finfluencers serves as a crucial reminder for retail investors about the risks of unverified financial advice on social media platforms. Five key lessons for retail investors have emerged from this case: avoid unsolicited tips by checking whether stock advice providers are registered with Sebi, beware of illiquidity in SME stocks that lack buyers and can be easily manipulated, prioritize strong fundamentals based on company strength and balance sheet analysis rather than social media hype, avoid emotional investing driven by FOMO, and consult certified financial advisors before making investment decisions. The case underscores the importance of investor awareness, understanding of equity investment principles, and the need for proper checks and regulations over finfluencers to protect retail investors from falling prey to unverified financial content on social media platforms.
