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.
