The Securities and Exchange Board of India (SEBI) has uncovered seven individuals from a single family who allegedly exploited social media platforms to influence retail investors and gain illegal profits by taking buy positions before public stock recommendations. These family members utilized channels like Telegram, WhatsApp, and X to circulate stock tips for market manipulation. They made significant gains of Rs 20.25 crores collectively by trading in Small and Medium-sized Enterprises (SME) platform-listed stocks.
SEBI’s interim enforcement order accused the individuals of engaging in fraud, manipulation, and unfair trade practices. The suspects provided stock recommendations to artificially inflate scrip prices, resulting in profits from 82 scrips during the examination period. Suspicious trading activities were linked to promotional posts, especially in low-liquidity counters, prompting SEBI to conduct search and seizure operations between January 21 and January 24, 2026.
During the examination period from December 1, 2023, to January 20, 2026, SEBI observed a significant increase in the combined gross trade value of the seven entities from Rs 548.62 crore to Rs 1,023.40 crore, marking an 86% rise. Additionally, the total squared-off profits of the entities surged by 242%, from Rs 17.06 crore to Rs 58.40 crore. Notably, Rohan Gupta and Sharon Gupta were identified as major beneficiaries, allegedly profiting nearly Rs 50 crore.
SEBI also gathered evidence indicating that the suspects were aware of the regulatory actions taken by SEBI against smaller players and were apprehensive about potential scrutiny. The market regulator’s actions aim to curb such illicit activities and maintain the integrity of the stock market.
