The market regulator Sebi has passed an interim order against seven individuals for allegedly using social media platforms to influence retail investors and profit from trades in several small and mid-cap stocks. According to reports from The Economic Times, the regulator named Hemant Gupta, Rohan Gupta, Aniket Gupta, Sharon Gupta, Leana Gupta, Rajani Gupta and Purvangi Gupta in the matter. Sebi said its surveillance systems observed that certain X accounts were publishing posts which were in the nature of influencing public to invest in various scrips, especially stocks listed on SME platforms. The regulator expressed concern over the growing influence of unregulated stock tips and trading calls distributed through social media platforms, noting that retail participation in Indian equities has surged sharply over the last few years, leading to increasing regulatory scrutiny around finfluencers, Telegram channels, WhatsApp groups and social media-based stock recommendation ecosystems.
Sebi alleged that the group accumulated shares before posting recommendations on social media platforms and later sold those holdings after prices rose following retail investor participation. As reported by The Economic Times, the combined gross trade value of the seven entities rose sharply during the examination period, with total gross trade value increasing from ₹548.62 crore in the earlier period to ₹1,023.40 crore during the examination period, representing an increase of 86%. The regulator also alleged that the total squared-off profits of the entities rose from ₹17.06 crore to ₹58.40 crore during the same period, marking a jump of 242%. According to the order, the 'Notices used social media platforms for disseminating stock recommendations and simultaneously traded in those securities for generating profits', with Rohan Gupta and Sharon Gupta among the 'biggest beneficiaries in value terms', achieving combined profits of around ₹50.03 crore. However, the latest data shows Rohan Gupta earned the largest share of the gains at ₹13.61 crore, while Aniket Gupta allegedly made ₹1.89 crore and Hemant Kumar Gupta ₹76.99 lakh.
According to the latest reports from Mint, the group operated accounts including WealthSolitaire and desiwallstreet on X and other social media platforms. The 'X' account WealthSolitaire had about 13,600 followers as on 24 January, while desiwallstreet had around 40,500 followers as on 22 January. The alleged scheme covered 82 stocks and 537 posts on X about the scrips from 1 December 2023 to 20 January 2026, with estimated gains of ₹20.25 crore. Among the stocks where profits were allegedly booked were DB Corp Ltd, Almondz Global Securities Ltd, Aeroflex Enterprises Ltd, and Sky Gold & Diamonds Ltd. The regulator noted that the operators posted stock recommendations on various scrips on their X Accounts and social media platforms, inducing the general public to deal in the securities purely based on misleading and unsolicited stock tips, enabling beneficiaries to liquidate their holdings at inflated prices.
According to the order, Sebi conducted search and seizure operations between January 21 and January 24, 2026 after obtaining court approval. As reported by The Economic Times, during the operation, electronic devices were seized and statements were recorded. The regulator examined trading activity between December 2023 and January 2026. Sebi attached detailed trade data, timestamps of social media posts and subsequent price movements in several stocks including SME counters and low-float shares, with multiple examples where trades were allegedly executed before stock recommendations were posted online. The latest order comes amid Sebi's broader crackdown on entities allegedly using digital platforms to manipulate stock prices or induce retail participation through misleading recommendations.
The regulator said the group largely focused on low-liquidity stocks where social media activity could sharply influence price movement and trading volumes. According to The Economic Times, the order includes detailed evidence showing how the group used social media platforms for disseminating stock recommendations and simultaneously traded in those securities for generating profits, exploiting the influence of social media recommendations on retail investor behavior. The group's strategy involved accumulating shares before posting recommendations on social media platforms and later selling those holdings after prices rose following retail investor participation. The regulator noted that this manipulation occurred in low-liquidity stocks where social media activity could sharply influence price movement and trading volumes. Following the investigation, net sales by the noticees jumped to ₹52.88 crore between January 25 and May 14, compared with ₹5.84 crore in the preceding comparable period, as reported by Mint. Sebi called the activity a threat to market integrity and ordered the impounding of ₹20.25 crore in alleged unlawful gains, barred the entities from trading in securities, and directed banks and depositories to freeze debits from their accounts and holdings.
