SEBI cracks down on finfluencer pump-and-dump network; warns retail investors against social media stock tips

MUMBAI: Market regulator Securities and Exchange Board of India (SEBI) has once again cracked down on finfluencers accused of using social media platforms to dupe retail investors, issuing an interim order against a group alleged to have manipulated stock prices through coordinated recommendations on X, Telegram and WhatsApp while booking profits by offloading shares onto unsuspecting investors.

The 234-page order details how seven individuals, led by Hemant Gupta, Rohan Gupta and Aniket Gupta, allegedly operated a scheme involving “fraud, manipulation and unfair trade practices” across 82 stocks, many of them listed on SME platforms.

According to SEBI, the operators first accumulated shares in select companies before aggressively promoting them through social media handles such as “@WealthSolitaire” and “@desiwallstreet”, which together had more than 54,000 followers. The regulator alleged that once retail participation pushed prices higher, the accused entities sold their holdings and earned wrongful gains estimated at Rs 20.25 crore.

“This is an interim order being passed during pendency of investigation as it has been noted that Noticees had prima facie engaged in fraud, manipulation and unfair trade practices,” the order said.

SEBI issued an interim order against Mr. Hemant Gupta and 6 other connected entities, who gave stock recommendations on social media platforms, executed opposite trades contrary to their recommendations and made unlawful gains.
Details at: https://t.co/LfnbAZ6HBd

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SEBI said the group used a multi-platform strategy involving X posts, Telegram channels and WhatsApp groups with thousands of subscribers to amplify bullish narratives around specific SME stocks. In several instances cited in the order, the accused allegedly circulated messages promising “record breaking” earnings, “new highs” and “multibagger” potential to lure retail investors.

The regulator also cited internal chats recovered during search and seizure operations conducted in January 2026, which indicated that the accused were aware of increasing regulatory scrutiny around unregistered stock recommendations on social media.

In one such exchange reproduced in the order, Aniket Gupta allegedly warned Hemant Gupta, “Need to be very careful with our WhatsApp msgs also. Better to avoid any aggressive msgs and buy sell reco”. The order further quoted another message stating: “If we come in their eyesight, we’ll be in big trouble. Lifetime of earnings will be gone”.

SEBI observed that despite being aware of the legal risks, the accused allegedly continued to push stock-related content while consciously avoiding explicit buy or sell recommendations on public platforms to evade scrutiny.

The regulator also highlighted how recommendations were often timed alongside trading activity. In one illustration involving Afcom Holdings Ltd, the order alleged that the operators promoted the stock heavily through social media while family-linked accounts sold large quantities of shares during the same period.

SEBI noted that the group’s combined gross trade value rose sharply from Rs 548.62 crore in the pre-examination period to Rs 1,023.40 crore during the examination period. Combined profits also reportedly surged by 242% to Rs 58.40 crore. The regulator has now restrained the noticees from accessing the securities market and barred them from buying, selling or dealing in securities until further directions.

The order comes amid growing regulatory concerns over the influence of unregistered finfluencers on retail participation in capital markets, especially in high-risk SME stocks where liquidity is relatively low and price movements can be more volatile. (ANI)