An interim order by Securities and Exchange Board of India (Sebi) has laid bare the modus operandi of an alleged stock manipulation network that used social media platforms including Telegram, WhatsApp and X to artificially inflate prices of select SME stocks before offloading shares at elevated levels to unsuspecting retail investors.
The regulator’s investigation showed that the accused entities and individuals allegedly followed a classic pump-and-dump strategy. Shares were first accumulated at relatively lower prices, after which bullish messages, aggressive earnings projections and promises of outsized returns were circulated across large public groups on Telegram, WhatsApp and X. Once buying momentum pushed up stock prices and volumes, the connected entities allegedly sold shares into the rally and booked profits.
In the 234-page order Sebi barred Hemant Gupta, Rohan Gupta, Aniket Gupta and four other individuals from accessing capital markets and stopped them from offering unregistered research analyst services. The market watchdog also ordered impounding of Rs 20.25 crore made by them as "unlawful" gains.
The order was passed following an investigation by Sebi. It carried out a search and seizure operation from January 21 to 24, 2026 at the premises of the accused and seized electronic devices. The examination period was between December 1, 2023 and January 20, 2026.
Also read: Sebi bars seven entities in social media stock recommendations, alleges Rs 58 crore gains
Insight into alleged fraud
The Sebi investigation found the scheme was executed across 82 stocks during the investigation period, generating prima facie wrongful gains of around Rs 20.25 crore. While evidence was gathered for all 82 scrips, the order detailed six illustrative cases to demonstrate the complete chain of activities and evidence supporting the allegations of fraud, manipulation and unfair trade practices. The regulator also noted that chats and communications suggested the accused were aware of Sebi’s strict enforcement actions against market manipulators and feared they too could come under regulatory scrutiny.
One of the key examples cited in the order relates to SME-listed Afcom Holdings. According to Sebi, social media influencer Aniket Gupta used his X handle “@desiwallstreet” and multiple Telegram channels to spread highly optimistic commentary around the company’s earnings prospects. Messages circulated on July 28, 2025 claimed the stock was headed for “another blockbuster earnings” and “a new all-time high”, while also promising assured returns. These messages were disseminated across Telegram channels such as “Traders Insight” and “BSE NSE Sensex Nifty Stocks Equity Research Reports”, which together had tens of thousands of followers.
The next day, more promotional content was pushed through social media claiming the company deserved a significantly higher market capitalisation and suggesting further upside potential. Sebi noted that these posts were not isolated recommendations but part of a coordinated effort, with chats showing Aniket Gupta instructing Hemant Gupta to further circulate the messages across larger groups and networks.
While the bullish messages were being aggressively amplified in public forums, the accused entities were allegedly selling shares in the background. Trading records examined by the regulator showed that members of the Gupta family - including Aniket Gupta, Rohan Gupta, Rajani Gupta and Sharon Gupta - sold substantial quantities of Afcom shares during the same period in which positive recommendations were being circulated. On July 29 alone, the accused cumulatively sold 14,160 shares worth around Rs 1.47 crore.
The Sebi investigation also highlighted internal chats that appeared to reveal deliberate coordination. In one communication dated July 31, 2025, Hemant Gupta allegedly instructed Rohan Gupta to “try to sell Afcom” on the same day. Following the instruction, shares worth nearly Rs 36 lakh were sold.
The regulator’s analysis showed that the noticees already held a large inventory of Afcom shares acquired at significantly lower prices before the recommendation campaign began. As of July 13, 2025, the four accused together held 1.89 lakh shares at a weighted average acquisition cost of Rs 395.95 per share. During the recommendation period between July 14 and July 31, they cumulatively sold 36,480 shares worth Rs 3.77 crore at an average selling price of Rs 1,034 per share — more than double their acquisition cost.
According to the order, the alleged unlawful gains were generated by exploiting the influence of social media channels with massive retail reach. By creating excitement around select SME counters, circulating exaggerated projections and simultaneously offloading holdings, the accused entities allegedly benefited from the sharp rise in trading activity and stock prices triggered by retail participation.
Sebi observed that the recommendations often contained language implying assured returns and unrealistic price targets, despite the entities themselves exiting their positions at the same time. The regulator believes such conduct may have misled investors and violated provisions relating to fraudulent and unfair trade practices in the securities market.
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