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Finfluencer Family Accused of ‘Pump-and-Dump’ Fraud, SEBI Takes Action
Stock market regulator SEBI has banned seven members of the Gupta family for allegedly committing a fraud of over ₹20 crore in the stock market. Investors were misled through a "pump-and-dump" scheme on social media. Let's explore the details.
The regulator SEBI has blacklisted seven persons in an elaborate stock market manipulation scam. They have been charged with a pump and dump scheme through social media for generating profits illegally amounting to more than ₹20.25 crore. SEBI has immediately halted their trading activities in securities.
This decision has been made in a 234-page interim order by SEBI dated May 22. In addition to that, SEBI has restricted Hemant Gupta, finfluencer, and his two sons, Rohan Gupta and Aniket Gupta, from offering services as unregistered research analysts.
According to SEBI, Hemant, Rohan, and Aniket acted as "operators." They first built positions in thinly traded SME stocks. Then, they inflated prices by spreading bullish recommendations on social media. They then sold their holdings at a profit. Four other family members, Sharon, Leena, Rajni, and Purvangi Gupta, assisted in this operation. They used their trading accounts or traded on the operators' instructions.
The investigation period was from December 1, 2023, to January 20, 2026. During this period, 82 stocks were manipulated. Rohan and Aniket posted bullish updates on their X handles. Hemant spread these recommendations on WhatsApp and Telegram groups. They often added explicit target prices. To avoid regulatory scrutiny, they did not disclose such information on X.
