SEBI bans seven entities from social media stock recommendations, Rs. Alleged benefit of 58 crores

Capital markets regulator Sebi has passed an interim order against seven individuals for allegedly using social media platforms including X to influence retail investors and profit from trades in some small and mid-cap stocks. The interim order alleged that the group used stock recommendations posted through social media accounts to generate “false gains” by trading ahead of public recommendations.

The regulator named Hemant Gupta, Rohan Gupta, Aniket Gupta, Sharon Gupta, Leena Gupta, Rajni Gupta and Purvangi Gupta in this matter. Sebi said its surveillance systems had observed that certain X accounts were publishing posts that were in the nature of influencing people to invest in various scrips, especially stocks listed on the SME platform. The market regulator began looking into the matter after noticing unusual trading patterns linked to social media activity.

According to the order, SEBI conducted search and seizure operations between January 21 and January 24, 2026 after obtaining court approval. During the operation, electronic devices were seized and statements were recorded. The regulator examined the trading activity between December 2023 and January 2026.

Sebi had alleged that the group accumulated shares before posting recommendations on social media platforms and sold those holdings after the price rose following participation from retail investors. “The notice givers used social media platforms to broadcast stock recommendations and at the same time trade in those securities to generate profits,” the order said. The regulator said the group mostly focuses on low-liquidity stocks where social media activity can sharply affect price movements and trading volumes.

According to SEBI’s findings, the combined gross trade value of the seven entities increased sharply during the examination period. The order noted that the total gross trade value in the previous period was Rs. 548.62 crore during the examination period to Rs. 1,023.40 crore, showing an increase of 86%. Sebi also alleged that during the same period the total squared-off profit of the entity was Rs. 17.06 crore to Rs. 58.40 crore, a jump of 242%. The regulator said that around Rs. Rohan Gupta and Sharon Gupta were among the “biggest beneficiaries in terms of value” with a combined profit of Rs 50.03 crore. The order includes multiple instances where trades were allegedly made before stock recommendations were posted online. SEBI has attached detailed trade data, timestamps of social media posts and subsequent price movements in several stocks, including SME counters and low-float shares.

The regulator also raised concerns about the growing influence of unregulated stock tips and trading calls delivered through social media platforms. Retail participation in Indian equities has grown sharply over the past few years, leading to increased regulatory scrutiny around financiers, Telegram channels, WhatsApp groups and social media-based stock recommendation ecosystems. The latest order comes amid Sebi’s wider crackdown on companies using digital platforms to manipulate share prices or induce retail participation through misleading recommendations.