SEBI Bars 7 Individuals Over Alleged Social Media Stock Scam:

SEBI Bars 7 Individuals Over Alleged Social Media Stock Scam India’s market regulator, Securities and Exchange Board of India, has started investigating seven people for allegedly misleading retail investors through social media platforms like X, Telegram, and WhatsApp to make illegal profits in small and mid-cap stocks. The people named in the case are Hemant Gupta, Rohan Gupta, Aniket Gupta, Sharon Gupta, Leana Gupta, Rajani Gupta, and Purvangi Gupta. According to SEBI, Hemant Gupta, along with his wife, ex-wife, and four children, allegedly worked together to influence stock prices online.

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SEBI said the group would first buy shares of small companies, especially low-liquidity and SME stocks, before posting stock recommendations on social media. Once retail investors started buying those shares after seeing the recommendations, the stock prices went up. The group then allegedly sold their shares at higher prices and earned large profits. The regulator’s surveillance system reportedly noticed unusual trading patterns connected to social media posts promoting certain stocks. Because of this, SEBI conducted search and seizure operations between January 21 and January 24, 2026, after getting court permission. During these searches, officials seized electronic devices and recorded statements from the individuals involved. SEBI examined trading activities from December 2023 to January 2026. According to the interim order, the total trading value of the seven people increased sharply from Rs 548.62 crore to Rs 1,023.40 crore during the investigation period, which is an 86% rise. The regulator also said their total profits from completed trades increased from Rs 17.06 crore to Rs 58.40 crore, showing a rise of 242%.

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Among them, Rohan Gupta and Sharon Gupta were said to be the biggest beneficiaries, allegedly making nearly Rs 50 crore in profits together. SEBI’s order also mentioned several cases where trades were allegedly made before stock tips were shared online, leading to sudden price jumps in small and low-float stocks.