Market regulator Securities and Exchange Board of India (SEBI) has imposed a total penalty of ₹3.10 crore on five individuals in connection with alleged price and volume manipulation in the shares of Darshan Orna Ltd (DOL) through coordinated trading activity and promotional messages circulated on Telegram channels.
The adjudication order follows the SEBI investigation into trading in DOL between September 2021 and June 2022. The regulator examined the roles of Aakash Doshi, Kevin Kapadia, Dilip Doshi, Richi Dilip Doshi, and Kruti Kevin Kapadia following suspicious trading patterns and social media recommendations that triggered regulatory scrutiny.
According to SEBI, the case involved an alleged scheme in which connected entities traded heavily in the scrip while favourable recommendations were circulated through Telegram channels to lure retail investors. SEBI says the coordinated activity created a misleading impression of market interest and contributed to a sharp rise in stock prices and trading volumes.
The investigation found that Telegram messages promoting Darshan Orna were circulated on 24 February 2022 and 4 March 2022, urging investors to buy the stock and promising substantial gains. SEBI observed that trading volume surged significantly after these messages were posted, while the stock price climbed sharply before eventually collapsing.
SEBI alleged that Aakash Doshi traded not only through his own account but also through the accounts of family members Dilip Doshi and Richi Doshi. Kevin Kapadia was alleged to have used Kruti Kapadia's account and to have maintained links with other entities involved in the trading activity.
The regulator also examined banking transactions and call data records (CDRs) which it said showed financial connections and frequent communication among several of the identified entities. According to SEBI, these relationships supported a coordinated effort to manipulate the scrip through synchronised trades, positive last traded price (LTP) contributions, creation of new high prices (NHPs) and small first trades intended to influence market perception.
During the investigation period, DOL’s share price moved from around ₹64 to nearly ₹147, then declined sharply. SEBI also noted that public shareholding in the company increased substantially during the period, suggesting that retail investors may have been drawn into the stock amid heightened activity and promotional messaging.
The regulator estimated that entities linked to the alleged scheme collectively earned profits exceeding ₹2.50 crore from trading in the scrip.
The present adjudication proceedings arose after earlier SEBI orders were challenged before the securities appellate tribunal (SAT). SAT remitted the matter back for fresh consideration and directed SEBI to re-examine the case after giving the noticees an opportunity to present their defence.
The noticees denied wrongdoing and argued that the alleged synchronised trades and the market impact were too small to constitute fraud or manipulation. They also contended that their profits were duly disclosed and taxed and that there was no evidence of investor loss or unlawful gains arising solely from objectionable trades.
However, SEBI maintained that the trading patterns, financial links and communication records, when viewed together with Telegram-based promotion of the stock, indicated a concerted attempt to manipulate price and volume in violation of the SEBI Act and the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.
After considering the facts and circumstances of the case, as well as the time value of wrongful gains made by the noticees, the following penalties are imposed under Section 15HA of the SEBI Act, as detailed in the table below.
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