Sebi Fines 11 for Manipulating Darshan Orna Ltd Share Price via Social Media

In a crackdown on market manipulation, India's Securities and Exchange Board (Sebi) has imposed a total penalty of ₹3.87 crore on 11 individuals for orchestrating a scheme to artificially inflate the share price of Darshan Orna Ltd (DOL) using social media channels.

The investigation revealed a multi-tiered operation that unfolded between September 2021 and June 2022. In the first tier, key individuals like Aakash Doshi and Kevin Kapadia accumulated DOL shares through their own and family accounts, while providing crucial funding support to other participants.

In the second tier, Satyen Dalal bolstered the funding infrastructure by channeling ₹46 lakh to the Doshi family during the share accumulation phase, later receiving 90% of these funds back during the selling phase, demonstrating the temporary nature of the scheme.

The third tier involved a meticulously coordinated message circulation network, with Dhanpal Gandhi serving as the link between the other entities and the Telegram platform. Amesh Jaiswal and Jalaj Agarwal were responsible for posting recommendations on the Telegram channel TBO, creating an impression of increased price and volume that allegedly influenced gullible investors to purchase DOL shares.

As a result of this coordinated effort, the number of DOL's public shareholders jumped by 335% during the January-March 2022 quarter, while the share price escalated from ₹77 to ₹146.7. A few individuals were able to collectively profit ₹2.51 crore by systematically exiting their positions.

Sebi found the individuals in violation of its Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) norms and levied the hefty penalties, ranging from ₹10 lakh to ₹1.2 crore per person.