Market regulator Securities and Exchange Board of India (SEBI) has imposed a total penalty of Rs3.87 crore on 11 individuals for orchestrating a fraudulent scheme in the shares of Darshan Orna Ltd (DOL). The penalties were the outcome of a detailed investigation covering the period from September 2021 to June 2022 during which these individuals colluded to artificially inflate the price and volume of DOL shares through manipulative trading and misleading stock recommendations.
Among those penalised, Dilip Doshi faced the highest fine of Rs1.20 crore, followed by Kruti Kevin Kapadia, who was fined Rs50 lakh, and Richi Dilip Doshi, who was penalised Rs45 lakh. Aakash Doshi was fined Rs90 lakh, while Dhanpal Gandhi was ordered to pay Rs20 lakh. Other individuals Kevin Kapadia, Amesh Jaiswal, Jalaj Agarwal, Satyen Dalal and Jalpa Dhanpal Gandhi were each fined Rs10 lakh for their respective roles in the manipulation.
In an order, Amit Kapoor, adjudicating officer (AO) of SEBI, articulated that "The noticees were involved in the manipulation of the scrip and had non-complied with the provisions of SEBI Act and PFUTP Regulations during the IP, the same in my assessment cannot be taken leniently and such violations deserve to be adequately penalised.”
SEBI’s investigation revealed that the accused individuals, referred to collectively as the noticees, engaged in a multi-layered fraudulent scheme involving three distinct operational tiers. At the core of the scheme were Aakash Doshi and Kevin Kapadia, who acquired DOL shares through their own accounts and those of their family members, including Dilip Doshi and Richi Doshi.
They also funded other participants to carry out trades aimed at distorting the market. The regulator found that trades were executed among family members and associates in a coordinated manner, often involving small quantities and repeated over several dates, solely to influence the last traded price (LTP) and establish new high prices.
The second layer of the scheme involved financing arrangements. SEBI found that Satyen Dalal, managing director (MD) of DOL’s merchant banker FOCL, had transferred Rs46 lakh to Dilip Doshi who, then, routed the funds to Aakash and Richi Doshi for buying shares. Though claimed as business loans, there was no supporting documentation or repayment proof. Around 90% of the money was returned after the shares were sold, exposing the manipulative and temporary nature of the scheme aimed at inflating the stock price for profit.
The third operational tier focused on the dissemination of misleading stock tips via Telegram channels such as '@owner_bullet' and groups like TBO. SEBI found that Dhanpal Gandhi coordinated this promotional activity in collaboration with Amesh Jaiswal and Jalaj Agarwal, who posted bullish messages about the stock during market hours. These messages promised 'jackpot' returns and specific price targets, which were intended to lure unsuspecting retail investors. Notably, public shareholding in DOL rose by 335% during the January-March 2022 quarter, while the share price soared from Rs77 to Rs146.70.
Despite the noticees' attempts to defend themselves, claiming, for instance, that some of the messages were sent after trading hours or that the transactions were coincidental, SEBI dismissed these arguments. The regulator cited detailed evidence, including call detail records, digital communications and past patterns of manipulative behaviour.
Screenshots and statements obtained during a lawful search further confirmed the coordinated effort. SEBI also clarified that quasi-judicial proceedings do not require adherence to the Indian Evidence Act and, hence, the absence of a Section 65B certificate could not invalidate electronic evidence.
Overall, the trading activity by the noticees led to the generation of Rs1,804.30 in net LTP and Rs30.75 in new high price, contributing nearly 37% of the total market high during the period. A total of 63 first trades were placed, with 51 of them involving just 100 shares or less, which SEBI viewed as a deliberate tactic to set high benchmarks and mislead investors. The noticees collectively earned over Rs2.51 crore in unlawful gains through this rigged trading activity.
In its final observations, SEBI emphasised that the scheme was sophisticated and designed to create a false appearance of demand and price appreciation in DOL’s shares. The regulator firmly rejected claims that tax payments on profits or lack of investor complaints mitigated the seriousness of the offence, stating that such manipulative actions erode investor trust and market integrity regardless of direct losses.
