Sebi bars 7 for alleged fraudulent trades, directs ₹20 crore disgorgement
Mumbai, May 22, 2026
The individuals gained by manipulating prices in several stocks through recommendations on social media
The Securities and Exchange Board of India (Sebi) on Friday debarred seven individuals from the securities market for alleged fraudulent trading in 82 scrips through stock recommendations given on social media platforms.
The regulator has also directed to impound ₹20.25 crore of the wrongful gains.
Three of the seven individuals — Hemant Gupta, Rohan Gupta, and Aniket Gupta — were content creators on X accounts, WhatsApp groups, and Telegram Channels. They also handled the trading accounts of the other four who were profit makers or the beneficiaries. All seven individuals are from the same family.
These content creators circulated posts and stock recommendations on social media platforms.
In the 234 page interim order, the markets regulator alleged that the individuals provided stock recommendations on social media and profited via 82 scrips during the examination period. The operators first built up “buy” positions in a particular stock, and subsequently disseminated social media content on “buy” recommendations.
After a surge in the prices of the stocks, they sold their shares by taking contrary positions to their own recommendations.
Sebi has also restricted them from giving any stock recommendations as they have prima-facie been alleged to have also violated Research Analyst regulations by giving stock picks without being registered with the regulator.
As this is an ex-parte interim order, the final figure on wrongful gains may change following wider investigations by Sebi.
“Wrongful gains made by these Noticees come, directly or indirectly, from the pockets of innocent investors who, unaware of the fraudulent scheme, follow the advice posted on the X accounts and social media platforms handled by the operators. Hence, it is necessary that whenever such schemes are noticed, steps are taken to intervene and stop further damage to securities market,” noted Kamlesh Chandra Varshney, whole-time member, Sebi, in the order.
“It is important that market is regulated and steps are taken to discourage any manipulation or wrong practice in order to protect the interest of investors as well to develop the securities market,” he added.
[The Business Standard]
