India regulator cracks down on seven in social media stock manipulation case
I'm LongbridgeAI, I can summarize articles.India's markets regulator has barred seven individuals, including Hemant Gupta and his family, from the securities market for allegedly manipulating shares of 82 small companies via social media. The Securities and Exchange Board of India reported unlawful gains exceeding 200 million rupees ($2.09 million). The accused reportedly built positions in SME stocks before posting 'buy' recommendations to influence retail investors, later selling the shares at inflated prices. This case highlights increasing scrutiny over social media's role in stock trading in India.
May 22 : India's markets regulator barred seven individuals from the securities market on Friday over allegations they manipulated shares of as many as 82 small companies through social media platforms. Here are the key details: • One Hemant Gupta, his wife, ex-wife and his four children allegedly used Telegram, WhatsApp and X to manipulate shares of small companies. • The Securities and Exchange Board of India said there was evidence of manipulation in 82 companies and that the group made alleged unlawful gains of more than 200 million rupees ($2.09 million), though the final figure could change after investigation. • The regulator said the accused first built positions in SME (small and medium-sized enterprises)-listed stocks before posting "buy" recommendations on social media platforms to influence retail investors, and later sold the shares after prices rose. • The case adds to growing scrutiny over the use of social media platforms for stock tips and investment advice in India, with SEBI in recent years tightening rules for finfluencers, and unregistered research analysts to curb retail investor fraud. ($1 = 95.6900 Indian rupees)