Social Media Driven Market Manipulation under PFUTP Regulation

Social Media platforms has been transformed the way in which information relating to securities market is disseminated, While this platforms offer speed and accessible they also become base for fraudulent and manipulation of market. This article examines the growing misuse of social media platforms in deceiving retail investors through fake profiles, misleading stock tips, and coordinated promotional campaigns, leading to substantial financial losses and erosion of market confidence. Recent regulatory interventions, including SEBI's cautionary advisories and enforcement actions such as the debarment of market manipulators in high-profile cases, reflect the seriousness of the threat posed by digital inducement. Further the study will identify the existing gaps particularly under the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, which lack explicit provisions addressing online manipulation, influencer liability, and platform accountability. The anonymity enabled by fake accounts, layered communication chains, and overseas servers further complicates investigation and enforcement. The absence of clear standards distinguishing casual opinion from fraudulent inducement results in inconsistency and delayed adjudication.