Description

SEBI adjudication order imposing penalties on 11 entities for price manipulation in Darshan Orna Limited scrip using Telegram channel recommendations.

Summary

SEBI has issued an adjudication order against 11 entities including Aakash Doshi, Kevin Kapadia, Dilip Doshi, and others for price manipulation in Darshan Orna Limited scrip using social media channels, specifically Telegram. The investigation covered the period from September 1, 2021, to June 30, 2022, and found violations of SEBI Act 1992 and PFUTP Regulations 2003.

Key Points

  • 11 noticees charged with price manipulation through Telegram channel recommendations
  • Investigation period: September 1, 2021 to June 30, 2022
  • Violations of SEBI Act 1992 and PFUTP Regulations 2003 established
  • Multiple adjudicating officers appointed during the process
  • Show Cause Notice issued on July 2, 2024
  • Case demonstrates SEBI’s focus on social media-driven market manipulation

Regulatory Changes

This order reinforces existing regulations under PFUTP but highlights SEBI’s enhanced focus on social media platforms as channels for market manipulation. No new regulatory framework introduced but strengthens enforcement precedent for digital platform misuse.

Compliance Requirements

  • Market participants must avoid coordinated trading based on social media recommendations
  • Entities using social media for investment advice must comply with existing regulations
  • Enhanced due diligence required for investment decisions based on social media channels
  • Proper documentation and justification needed for trading activities

Important Dates

  • Investigation Period: September 1, 2021 - June 30, 2022
  • Show Cause Notice: July 2, 2024
  • Final AO Appointment: December 3, 2024
  • Adjudication Order: July 30, 2025

Impact Assessment

This case establishes important precedent for SEBI’s enforcement against social media-driven market manipulation. While specific to Darshan Orna Limited, it signals heightened regulatory scrutiny of investment recommendations through digital platforms like Telegram. Market participants using social media for investment advice or following such recommendations face increased compliance risks.

Impact Justification

High importance due to precedent-setting social media manipulation case; medium impact as specific to one scrip but establishes regulatory enforcement pattern