The Securities and Exchange Board of India (SEBI) has issued an interim order in a case linked to stock recommendations allegedly circulated through social media platforms such as X, WhatsApp and Telegram.
According to the market regulator, certain accounts on X were allegedly being used to influence retail investors toward small and medium enterprise (SME) stocks. SEBI said it carried out a search and seizure operation in January 2026 as part of its investigation into the matter.
As per the interim order, the accused individuals allegedly took positions in shares before posting recommendations online. Once stock prices moved higher following the social media activity, the shares were allegedly sold to book profits.
SEBI further stated that the noticees were allegedly managing trading accounts linked to profit makers and beneficiaries involved in the operation. The regulator said the accused prima facie engaged in fraudulent and manipulative practices that violated fair market norms.
The investigation reportedly covers trading activity in 82 stocks during the examination period. While evidence has been gathered for all the scrips, SEBI has highlighted six detailed instances in its interim order.
The market watchdog also observed that the activities carried characteristics of research analyst services being offered without mandatory registration.
SEBI estimated the unlawful gains from the alleged operation at around Rs 20.25 crore, though it clarified that the figure could change after the investigation is completed.
The regulator added that the noticees prima facie violated provisions related to fraudulent and unfair trade practices, along with regulations governing research analysts.
