SEBI Impounds ₹20.25 Crore, Bars 7 In Alleged Social Media Stock Manipulation Scheme

The Securities and Exchange Board of India (SEBI) has passed an ex parte interim order against seven members of a family, alleging that they built positions in select scrips, promoted them through X, WhatsApp and Telegram to induce public buying, and then offloaded their holdings for gains.

Whole Time Member Kamlesh C Varshney, who passed the order, impounded ₹20.25 crore, said to represent alleged wrongful gains, and restrained all seven noticees from accessing the securities market.

“I am of the view that it is a fit case to pass interim ex-parte order to insulate the securities market from the mischievous act of Noticees and also to prevent these Noticees in conducting similar activities which are prima facie against the interest of investors as well as against the development of securities market.”, the regulator noted.

SEBI noted that the investigation began after it observed certain X accounts publishing stock recommendations and promotional content concerning companies listed on the SME platform and appearing to influence public investment decisions.

Suspecting violations of securities laws, the regulator commenced an examination into the trading activities linked to the operators of these accounts.

Pursuant to a court order, SEBI conducted search and seizure operations at the premises of the seven noticees between January 21 and 24, 2026, during which it seized electronic devices, collected digital evidence and recorded statements.

According to the regulator, the family operated a network of X accounts, WhatsApp groups and Telegram channels through which stock recommendations and promotional content were circulated to a large audience.

SEBI alleged that the noticees first accumulated positions in selected scrips, then disseminated recommendations through social media platforms, and sold their holdings after the share prices rose.

The regulator alleged that the scheme was executed across 82 scrips during the examination period between December 2023 and January 2026, generating alleged wrongful gains of ₹20.25 crore.

SEBI identified Hemant Gupta, Rohan Gupta and Aniket Gupta as the principal operators behind the social media network, while four other family members were identified as participants and beneficiaries in the alleged scheme.

While the broader investigation covered 82 scrips, SEBI analysed representative instances involving Afcom Holdings Ltd, K2 Infragen Ltd and Sona Machinery Ltd, among others, to illustrate the alleged modus operandi.

SEBI noted recommendations posted on X were made only after positions had already been built in the concerned scrips, without disclosure of existing holdings, intended purchases or subsequent sales.

The regulator also found that the operators were conscious of regulatory scrutiny and avoided explicit “buy”, “sell” or target-price recommendations in some public posts, while using disclaimers such as “DYODD” and “not a buy/sell recommendation”.

“Such strategy has been employed to give an impression that they are simply informing the public about fundamentals, operations, financials, etc. of a company and not giving any recommendations to buy or sell the scrip, which only a SEBI regulated entity is permitted. Though in substance they were giving 'buy' recommendations with clear or disguised target price, assured growth in revenue/profits and doubling of price.”

Concluding that the noticees had collectively engaged in fraudulent conduct, SEBI observed:

“Thus, it is observed that Noticees have collectively dealt in securities in a fraudulent manner and devised a manipulative, fraudulent and an unfair trading scheme to defraud or deceive investors dealing in securities market.”

Accordingly, SEBI impounded ₹20.25 crore, said to represent alleged wrongful gains, and restrained all seven noticees from dealing in securities or accessing the securities market.

Hemant Gupta, Rohan Gupta and Aniket Gupta were also directed to cease and desist from offering unregistered research analyst services or holding themselves out as research analysts.