Sebi Bans 7 Individuals In ₹20 Crore Social Media Stock Manipulation Case
New Delhi, May 25: India’s capital markets regulator has taken strong enforcement action against a family-linked group accused of running a coordinated stock manipulation scheme through social media platforms, allegedly causing losses to retail investors while generating illegal gains exceeding ₹20.25 crore.
Allegations Of Coordinated Pump-And-Dump Scheme
The Securities and Exchange Board of India has barred seven individuals from participating in securities markets after finding prima facie evidence of a pump-and-dump operation involving multiple small and thinly traded stocks.
The regulator alleged that members of the Gupta family first accumulated positions in select SME stocks and later circulated bullish stock recommendations across social media platforms to artificially inflate prices. Once prices rose, they allegedly sold their holdings at a profit.
Social Media Used To Influence Retail Investors
According to the findings, the group used platforms such as X (formerly Twitter), WhatsApp and Telegram to promote stock tips and target prices to a large subscriber base.
Two handles, including ‘@WealthSolitaire’ and ‘@desiwallstreet’, were reportedly used to publish optimistic stock views. These messages were further amplified in private messaging groups, where detailed price targets were shared.
The regulator noted that such communications were often kept off public platforms to avoid scrutiny while still reaching large numbers of retail investors through closed groups.
Massive Trading Activity And Profit Surge Detected
The investigation covered 82 scrips over a long examination period from December 2023 to January 2026. During this time, the combined gross traded value of the individuals reportedly increased by 86 per cent, rising from ₹548 crore to ₹1,023 crore.
The total squared-off profits of the group surged by 242 per cent, reaching ₹58.40 crore. Among those involved, two members of the family were identified as the largest beneficiaries, earning over ₹50 crore in profits collectively.
The regulator also observed that the group made wrongful gains exceeding ₹20.25 crore at the expense of investors who acted on the stock recommendations shared online.
Sebi Orders Market Ban And Disgorgement Of Gains
The Securities and Exchange Board of India directed the seven individuals to be restrained from accessing or dealing in securities markets either directly or indirectly.
It also ordered the impounding of alleged unlawful gains of over ₹20.25 crore and instructed them to cease any activity related to unregistered research analyst services or stock advisory functions.
According to the regulator, the individuals involved were not registered research analysts but were still actively influencing investment decisions of retail participants through repeated stock recommendations.
Growing Concern Over Finfluencer-Led Market Risks
The case highlights increasing regulatory concern over unregistered financial influencers, commonly known as finfluencers, who use social media platforms to provide stock tips without proper registration or oversight.
The regulator believes such practices can mislead retail investors, particularly in low-liquidity stocks where prices are easier to manipulate.
Stronger Surveillance On Digital Investment Advice
The action reflects Sebi’s broader push to tighten surveillance on digital financial communication and prevent market manipulation through online platforms.
Authorities have been increasing scrutiny of trading patterns, especially where unusual price movements coincide with coordinated social media promotions.
The case is expected to serve as a major warning for individuals and groups promoting unverified investment advice online without regulatory approval.
