Mumbai: India’s market regulator on Friday barred seven entities that it said were linked to a social media-driven stock manipulation operation that allegedly generated more than ₹20 crore in profits by luring retail investors into little-known stocks through X and Telegram recommendations.
In an interim ex-parte order, the Securities and Exchange Board of India (Sebi) alleged that Hemant Kumar Gupta, Rohan Gupta and Aniket Gupta engaged in fraud, manipulation and unfair trade practices through social media-driven stock recommendations.
The regulator alleged that the trio first accumulated shares in select small- and micro-cap companies through connected accounts. Once positions were built, they began posting bullish stock recommendations on X, Telegram and other social media platforms, urging followers to buy the shares.
The recommendations triggered buying interest among retail investors, pushing up trading volumes and stock prices. Sebi said the operators then used the price rise to sell their own holdings at inflated levels, pocketing gains while ordinary investors were left exposed after the rally faded.
On social media
According to Sebi, the group operated accounts including WealthSolitaire and desiwallstreet on X and other social media platforms. The ‘X’ account WealthSolitaire had about 13,600 followers as on 24 January, while desiwallstreet had around 40,500 followers as on 22 January, according to Sebi.
“The Operators by posting stock recommendations on various scrips on their X Accounts and social media platforms induced the general public to deal in the securities purely based on misleading and unsolicited stock tips and thus enabling the beneficiaries to liquidate their holdings at an inflated price,” the regulator said in the order.
The alleged scheme covered 82 stocks and 537 posts on X about the scrips from 1 December 2023 to 20 January 2026, with estimated gains of ₹20.25 crore.
Among the stocks where profits were allegedly booked were DB Corp Ltd, Almondz Global Securities Ltd, Aeroflex Enterprises Ltd, and Sky Gold & Diamonds Ltd.
Calling the activity a threat to market integrity, Sebi ordered the impounding of ₹20.25 crore in alleged unlawful gains, barred the entities from trading in securities, and directed banks and depositories to freeze debits from their accounts and holdings.
Stopping services
The regulator also ordered the accused to stop offering unregistered research analyst services immediately.
Sebi said the profits were calculated on the basis of trades executed within two days of social media posts recommending the stocks.
The regulator alleged that Rohan Gupta earned the largest share of the gains at ₹13.61 crore, while Aniket Gupta allegedly made ₹1.89 crore and Hemant Kumar Gupta ₹76.99 lakh. Sharon Gupta, Leana Gupta and Rajani Gupta were also held “jointly and severally liable” for allegedly allowing their accounts to be used in the operation.
“The facts of this case demonstrate clear scheme of manipulation to harm the interest of investors by misguiding them to take position in securities so that Profit Makers/ Beneficiaries could make profit at the cost of such investors. Wrongful gains made by these Noticees come, directly or indirectly, from the pockets of innocent investors,” the regulator said in its order.
Sebi said the group sharply increased the sale of holdings after a search-and-seizure operation on 21 January. Net sales by the noticees jumped to ₹52.88 crore between January 25 and May 14, compared with ₹5.84 crore in the preceding comparable period.
