Description

SEBI adjudicating officer issues fresh order against five individuals for price manipulation of Darshan Orna Limited scrip using Telegram social media channels during September 2021 to June 2022.

Summary

SEBI’s Adjudicating Officer issued fresh adjudication order no. ORDER/AK/RK/2026-27/32409-32413 against five individuals — Aakash Doshi, Kevin Kapadia, Dilip Doshi, Richi Dilip Doshi, and Kruti Kevin Kapadia — for alleged price manipulation of Darshan Orna Limited (DOL) scrip using Telegram social media channels. This order follows remand from the Securities Appellate Tribunal (SAT), which directed fresh consideration of the earlier order dated July 30, 2025.

Key Points

  • Five noticees charged under Section 15HA of the SEBI Act for fraudulent and unfair trade practices
  • Alleged manipulation involved circulating stock recommendations via Telegram channels to influence DOL scrip price
  • Investigation period: September 1, 2021 to June 30, 2022
  • Original adjudication order (ORDER/AK/RK/2025-26/31553-31563) dated July 30, 2025 was appealed before SAT
  • SAT remitted the matter back for fresh consideration for all five noticees between November and December 2025
  • Fresh adjudicating officer appointed via orders dated November 18, December 17, and December 23, 2025
  • Violations alleged under SEBI Act, 1992 and PFUTP Regulations, 2003

Regulatory Changes

No new regulatory changes introduced. This order is an enforcement action applying existing provisions of the SEBI Act, 1992 (Section 15HA) and SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003.

Compliance Requirements

  • Market participants must not circulate stock recommendations or tips via social media platforms (including Telegram) to induce trading and profit from resulting price movements
  • Entities coordinating buy/sell activity through unregistered channels risk action under PFUTP Regulations
  • All persons named in SEBI show cause notices must respond and participate in adjudication proceedings

Important Dates

  • September 1, 2021 – June 30, 2022: Investigation period for trading activity in DOL scrip
  • July 2, 2024: Common Show Cause Notice issued to all five noticees
  • July 30, 2025: Original adjudication order passed (ORDER/AK/RK/2025-26/31553-31563)
  • November 4, 2025: SAT order for Kruti Kevin Kapadia — fresh hearing directed
  • November 21, 2025: SAT order for Kevin Kapadia — matter remitted for fresh consideration
  • November 26, 2025: SAT order for Aakash Doshi — matter remitted back
  • December 15, 2025: SAT order for Dilip Doshi and Richi Dilip Doshi — matter remitted back
  • November 18 / December 17 / December 23, 2025: Fresh adjudicating officer appointed

Impact Assessment

This case signals continued SEBI focus on social media-driven market manipulation, particularly via messaging platforms like Telegram. The fact that SAT remanded the original order back for procedural fairness (opportunity of hearing, fresh consideration) underscores due process requirements in adjudication. The five individuals face potential monetary penalties under Section 15HA if violations are established in the fresh proceedings. Broader market impact is limited to the DOL scrip and the specific individuals involved, but the case reinforces SEBI’s surveillance of social media channels for coordinated pump-and-dump activity.

Impact Justification

High importance as it involves deliberate price manipulation via Telegram channels, a growing enforcement concern for SEBI. Medium market impact as it targets specific individuals rather than introducing broad regulatory changes.