SEBI Imposes Rs5 Lakh Penalty on Dorni Vinimoy, H&K Realestate, Timely Financial and Others in Cool Caps Case
Moneylife Digital Team 18 September 2025
Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs5 lakh, to be paid jointly and severally, on Dorni Vinimoy Pvt Ltd, H and K Realestate LLP, Timely Financial Consultants Pvt Ltd, Upendra Narayan Choudhary, Durgeshwari Devi Choudhury, Gopalji Choudhary and Rupa Kumari, for violations of market regulations in the trading of Cool Caps Industries Ltd.
 
SEBI investigated trading in the shares of Cool Caps, listed on the National Stock Exchange (NSE)’s small and medium enterprises (SME-Emerge platform) from 7 April 2022 to 18 January 2023. 
 
The regulator's probe revealed sharp price movements, with the scrip rising from Rs44.35 to Rs543.95 an increase of 1,126% over 192 trading days. A group of connected entities, including the penalised parties, were found to be consistently trading with each other, accounting for a large share of total market volume and contributing significantly to the price rise.
 
SEBI's analysis showed that Dorni Vinimoy and other connected entities engaged in unfair trade practices by repeatedly buying above the last traded price and creating artificial price movements. Their trades were found to have added substantially to the last traded price (LTP) during different patches of the investigation period.
 
Further, SEBI found that Timely Financial Consultants and its persons acting in concert (PACs), including the other noticees, failed to disclose a change in their shareholding after crossing the 2% threshold under Regulation 29(2) and 29(3) of the SAST Regulations. Their collective holding had increased by 2.13% on 6 July 2022, but the disclosure was not made within the mandated time.
 
While the penalised noticees argued that the violation was ‘technical’, SEBI held that disclosures are a mandatory obligation aimed at ensuring market transparency. 
 
The regulator concluded that both unfair trade practices and disclosure lapses had occurred, leading to the imposition of the Rs5 lakh penalty.
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