SEBI initiates inquiry into Telegram-based market manipulation in Moksh Ornaments stock

SEBI examined whether specific individuals and entities used social media (Telegram) to circulate misleading stock tips to facilitate the offloading of shares.

Who it concerns: Mr. Anupam Narain Gupta, Mr. Narain Kumar Gupta, Narain Kumar Gupta HUF, Mr. Abhay Narain Gupta, Abhay Gupta HUF, Pro Fin Capital Services Ltd., Ambe Securities Pvt. Ltd., Triyamb Securities Private Ltd., Mr. Rohit Arora, Mr. Amesh Surajlal Jaiswal, Mr. Jalaj Agrawal, Mr. Arvind Shukla, and Mr. Aviral Saxena.

What SEBI found or ordered

• SEBI alleged that Noticees 1 to 13 violated sections 12A(a), (b), (c) of the SEBI Act and various regulations under the PFUTP Regulations, 2003.
• SEBI alleged that Noticee 10 (Mr. Amesh Surajlal Jaiswal) violated section 11C(5) of the SEBI Act for failing to appear before the Investigating Authority.
• The investigation period covered May 31, 2021, to March 31, 2022.
• SEBI alleged that misleading buy recommendations for MOL were posted on Telegram channels on January 31, 2022, and February 01, 2022, claiming 40-50% returns in 5-7 days.
• SEBI alleged that Noticee 1 was the main perpetrator who accumulated and offloaded shares in collusion with Noticee 10, while Noticees 2 to 9 aided and abetted this activity.
• SEBI alleged that Noticees 10 to 13 were involved in posting these misleading tips via Telegram channels.

Also in the document

• The order is an adjudication proceeding initiated under Section 15-I of the SEBI Act, meaning it is a formal inquiry to determine penalties, not yet a final conviction or penalty imposition in this text excerpt.
• SEBI noted that digital devices of Noticee 11 were seized and analyzed, revealing WhatsApp messages and call records linking the individuals.
• The alleged scheme involved the use of Telegram channels with large subscriber bases (reported as 1.5-2 lakh total subscribers per channel by some noticees) to disseminate the tips.