Mumbai: The Securities and Exchange Board of India (SEBI) has found seven individuals from a single family allegedly using social media platforms to influence retail investors and make illegal profit by taking buy positions ahead of public stock recommendations.
An interim enforcement order named seven family members, using channels such as Telegram, WhatsApp and X to circulate tips for stock market manipulation.
They took positions in scrips listed in Small and Medium-sized Enterprises (SME) platform before the calls were widely shared and have collectively made prima facie wrongful gains of Rs 20.25 crores, the market regulator said.
Alleged individuals “had prima facie engaged in fraud, manipulation and unfair trade practices. They indulged in providing stock recommendations with the intent to artificially inflate the market price of the scrip thereby profiting in a total of 82 scrips during the examination period,” the SEBI order said.
SEBI found suspicious trading linked to promotional posts, particularly in low liquidity counters.
The market regulator carried out search and seizure operations between January 21 and January 24, 2026, after obtaining court approval, seizing electronic devices and recording their statements under oath.
Examination has been undertaken by SEBI for the period December 1, 2023 to January 20, 2026. SEBI found that the combined gross trade value of the seven entities rose from Rs 548.62 crore in the earlier period to Rs 1,023.40 crore during the examination period, marking an 86 per cent rise.
The regulator also claimed that the entities’ total squared-off profits rose 242 per cent from Rs 17.06 crore to Rs 58.40 crore.
SEBI identified Rohan Gupta and Sharon Gupta as among the largest beneficiaries, with combined alleged profits of nearly Rs 50 crore.
Evidence has also been collected as to how suspects were aware of the strict action being taken by SEBI even against small handlers and their apprehension as to how they could also be caught by SEBI.
(IANS)
