The Securities and Exchange Board of India (Sebi) has barred seven individuals, including Hemant Gupta, Rohan Gupta, Aniket Gupta, Sharon Gupta, Leana Gupta, Rajani Gupta, and Purvangi Gupta, from trading in securities. The regulator alleges they used social media to influence stock prices, generating profits of Rs 58 crore between December 2023 and January 2026.
Sebi's surveillance systems detected unusual trading patterns linked to social media activity, prompting an investigation. The regulator conducted search and seizure operations from January 21 to January 24, 2026, after obtaining court approval. Electronic devices were seized, and statements were recorded during this period.
The group allegedly accumulated shares before posting recommendations on social media platforms, subsequently selling them after retail investor-driven price increases. Sebi noted that the group focused on low-liquidity stocks, where social media activity could significantly impact price and volume.
According to Sebi's findings, the combined gross trade value of the seven entities increased from Rs 548.62 crore to Rs 1,023.40 crore during the examination period, an 86% rise. The total squared-off profits rose from Rs 17.06 crore to Rs 58.40 crore, a 242% increase. Rohan Gupta and Sharon Gupta were identified as major beneficiaries, with combined profits of Rs 50.03 crore.
The order includes detailed trade data, timestamps of social media posts, and subsequent price movements in several stocks, including those on SME platforms. Sebi expressed concern over the influence of unregulated stock tips distributed via social media, amid rising retail participation in Indian equities.
Background
This development is part of Sebi's broader crackdown on entities allegedly using digital platforms to manipulate stock prices or induce retail participation through misleading recommendations.
Looking ahead, Sebi's actions underscore the need for increased vigilance around social media-based stock recommendations. Market participants should expect further regulatory measures as Sebi continues to address the challenges posed by digital platforms in the financial markets.
