Sebi Cracks Down on Darshan Orna Stock Manipulation Scheme

The Securities and Exchange Board of India (Sebi) imposed a Rs 3.87 crore fine on 11 individuals for manipulating Darshan Orna Ltd's share prices via social media. The scheme involved complex layers of stock trading and dissemination of information, causing a surge in public shareholders and share value.

The Securities and Exchange Board of India (Sebi) has imposed a significant penalty on 11 individuals for their involvement in manipulating the share prices of Darshan Orna Ltd using social media platforms. The total fine amounts to Rs 3.87 crore and must be settled within 45 days, according to Sebi's order.

The market manipulation was conducted in a multi-tiered scheme from September 2021 to June 2022. At the core of the operation, Aakash Doshi, aided by his father, acquired shares, while Kevin Kapadia engaged in trades through his wife's account, providing financial backing to other participants. Simultaneously, Satyen Dalal reinforced this framework by contributing Rs 46 lakh, cycling back most funds during the trading exit phase.

The final layer involved disseminating trade recommendations via Telegram, orchestrated by Dhanpal Gandhi with the assistance of Amesh Jaiswal and Jalaj Agarwal. These efforts significantly inflated the stock's market perception, as reflected in the share price rising from Rs 77 to Rs 146.7, and public shareholder numbers increasing dramatically. Sebi's investigation marks a crucial enforcement in preventing violations of Prohibition of Fraudulent and Unfair Trade Practices norms.

(With inputs from agencies.)