SEBI bans 7 individuals in Rs 20-cr stock manipulation case
Capital markets regulator SEBI has barred seven individuals from securities markets for allegedly running a coordinated pump-and-dump scheme across social media platforms and making unlawful gains of over Rs 20.25 crore.
Apart from the debarment, the regulator has also directed finfluencer Hemant Gupta and his sons, Rohan Gupta and Aniket Gupta, to immediately cease and desist from offering unregistered research analyst services or from portraying themselves as research analysts.
In a 234-page interim order passed on May 22, Sebi alleged that Hemant, Rohan and Aniket acted as “Operators” who first accumulated positions in thinly traded SME stocks and later circulated bullish stock recommendations on social media platforms to inflate prices, before selling their holdings at a profit.
Four other family members — Sharon, Leana, Rajani and Purvangi Gupta - allegedly facilitated the operation by allowing the use of their trading accounts or by executing trades on the operators’ instructions, the order said.
“The on-going investigation has prima facie highlighted the scheme and device orchestrated intricately by noticees whereby 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,” SEBI’s Whole Time Member Kamlesh C Varshney said in the order.
According to Sebi, the scheme involved 82 scrips during the examination period from December 1, 2023, to January 20, 2026.
Sebi said Rohan and Aniket posted bullish updates on their X handles, ‘@WealthSolitaire’ and ‘@desiwallstreet’. On the other hand, Hemant amplified these recommendations across several WhatsApp and Telegram groups, often adding explicit target prices and deliberately keeping such communications off X, to avoid regulatory scrutiny.
The regulator noted that the combined gross traded value of the seven individuals rose 86 per cent from Rs 548 crore in the pre-examination period to Rs 1,023 crore during the examination period.
Further, their total squared-off profits surged 242 per cent to Rs 58.40 crore. Among them, Rohan and Sharon Gupta emerged as the biggest beneficiaries with profits of Rs 50.03 crore, according to the order.
The markets watchdog also observed that the Gupta family made wrongful gains exceeding Rs 20.25 crore from the pockets of innocent investors who followed stock recommendations circulated on social media platforms.
Sebi also said Hemant, Rohan and Aniket were not registered as research analysts.
However, despite not being registered, they were providing services to a large number of their subscribers and misleading them to deal in the securities market on the basis of stock analysis.
Accordingly, Sebi directed the Gupta family to jointly and severally impound unlawful gains of over Rs 20.25 crore and restrained them from buying, selling or dealing in securities directly or indirectly, with immediate effect.
