The Securities and Exchange Board of India (Sebi) has barred Hemant Gupta, Rohan Gupta, Aniket Gupta, and four others from accessing capital markets following an investigation into an alleged pump-and-dump scheme. The accused allegedly manipulated stock prices by disseminating bullish messages and projections across social media platforms, leading to unlawful gains of Rs 20.25 crore.
The Sebi investigation revealed that the scheme was executed across 82 stocks between December 1, 2023, and January 20, 2026. The accused used platforms like Telegram, WhatsApp, and X to circulate aggressive earnings projections and promises of outsized returns. Once stock prices surged, they allegedly sold their shares, booking substantial profits.
In a detailed 234-page order, Sebi highlighted six illustrative cases, including the manipulation of Afcom Holdings' stock. Social media influencer Aniket Gupta allegedly used his X handle "@desiwallstreet" and Telegram channels to spread optimistic commentary, driving up the stock price. The accused sold 14,160 shares worth Rs 1.47 crore on July 29, 2025, amidst the promotional campaign.
Sebi's analysis showed that the accused held a large inventory of Afcom shares at a lower cost before the campaign. By July 31, 2025, they sold 36,480 shares worth Rs 3.77 crore at an average price of Rs 1,034 per share, more than double their acquisition cost of Rs 395.95 per share.
The regulator's investigation also uncovered internal communications indicating deliberate coordination among the accused. Sebi noted that the recommendations often implied assured returns, misleading investors and violating securities market regulations.
The alleged scheme exploited social media's vast retail reach, creating excitement around select stocks and benefiting from increased trading activity. Sebi's actions underscore its commitment to curbing market manipulation and protecting investors.
Background
The use of social media platforms for stock manipulation has been a growing concern for regulators worldwide. This case highlights the challenges faced by authorities in monitoring and curbing such activities, especially given the vast reach and influence of digital communication channels.
Looking ahead, Sebi's crackdown on such fraudulent activities signals a warning to market manipulators. Investors are advised to exercise caution and conduct thorough due diligence before acting on social media stock recommendations.
