Sebi Prohibits Seven Entities for Irregular Stock Recommendations on Social Media, Claims Rs 58 Crore Gains Involved.
The Securities and Exchange Board of India (Sebi) has issued an interim order against seven individuals for allegedly utilizing social media platforms, particularly X, to sway retail investors, profiting from trades in small and mid-cap stocks. The individuals named in the order—Hemant Gupta, Rohan Gupta, Aniket Gupta, Sharon Gupta, Leana Gupta, Rajani Gupta, and Purvangi Gupta—are accused of generating “wrongful gains” by executing trades ahead of public recommendations shared via their social media accounts. This scrutiny came after Sebi’s surveillance systems detected unusual trading patterns correlated with the social media activities of these individuals, prompting an examination of their trading history from December 2023 to January 2026.
Dive deeper into the allegations, Sebi’s investigations revealed that the group strategically accumulated shares prior to posting their stock recommendations online, subsequently capitalizing on price surges stemming from retail investor interest. The order cites that while the total gross trade value of the entities experienced remarkable growth—from Rs 548.62 crore to Rs 1,023.40 crore, an 86% increase—Rohan and Sharon Gupta emerged as principal beneficiaries, collectively realizing profits of approximately Rs 50.03 crore. The detailed order underscores multiple instances where trades were executed prior to the public dissemination of stock recommendations, amplifying concerns regarding market manipulation and unethical trading practices.
This latest action by Sebi aligns with the regulator’s intensified scrutiny of the burgeoning influence of unregulated stock tips distributed through social media networks. As retail participation in Indian equities escalates, there is a parallel rise in the regulation of ‘finfluencers’ and online groups that may be engaged in misleading stock recommendations. The regulator’s concern is warranted, emphasizing the need for stringent monitoring of digital platforms that could potentially distort market integrity. Sebi’s crackdown underscores a commitment to preserving fair trading practices and ensuring that retail investors are safeguarded from potentially fraudulent activities in an increasingly complex financial landscape.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)