SEBI bans 222 for pump-and-dump, Rs 143.79 cr return

What SEBI’s latest order says

The Securities and Exchange Board of India (SEBI) has barred 222 individuals and entities from the securities market for four to seven years for alleged pump-and-dump activity in five listed companies. The five names cited are Mauria Udyog, Vishal Fabrics, 7NR Retail, GBL Industries, and Darjeeling Ropeway. Alongside the market access ban, the regulator imposed penalties totalling Rs 47.7 crore on the entities covered by the order. SEBI also ordered disgorgement of illegal or wrongful gains linked to what it described as large-scale price and volume manipulation that continued for several years.

The order categorised participants as volume creators, price influencers, operators, and offloaders. In some instances, SEBI also flagged promoters and connected entities in relation to the alleged manipulation. The action follows an interim order issued in June 2023, when SEBI had first restricted a large set of entities in the same matter.

Five stocks, 2017-2020: the alleged pump-and-dump period

The case relates to alleged manipulation between 2017 and 2020, according to the text provided. SEBI stated the operation affected these five scrips and involved a network of entities acting in a coordinated way. The regulator’s narrative points to both price and volume as the key levers used to create artificial trading activity.

The intent of such schemes, as described in SEBI’s actions, is typically to inflate prices and trading volumes and then offload shares at elevated levels to other market participants. In this case, the material also indicates retail investors were among those exposed, as SEBI referred to offloading at higher prices to “unsuspecting retail investors” in a related description of pump-and-dump modus operandi.

Hanif Shekh named as key alleged orchestrator

Separately in the provided text, SEBI prohibited 221 entities, including an individual identified as Hanif Shekh, from participating in the securities market for a duration of up to seven years. A penalty of Rs 10 crore was imposed on Shekh for his alleged role, with SEBI describing him as the primary orchestrator in the order issued on a Tuesday.

SEBI reported that entities amassed illegal profits of about Rs 143.79 crore through the operation. It also barred five entities linked to Shekh for six years and fined them Rs 2 crore each. Other involved parties were prohibited for periods of up to five years, with fines ranging from Rs 0.05 crore to Rs 1 crore.

Disgorgement order and 12% interest clause

Beyond penalties and bans, SEBI directed the return of illegal profits totalling Rs 143.79 crore. The disgorgement amount carries 12 percent annual interest calculated from October 21, 2020 until the date of payment by the implicated entities.

The interim order and show cause notice issued in June 2023 had already restricted Shekh and 225 other entities from the market, and directed them to return the alleged illicit gains linked to the five companies’ shares. The final directions, as reflected in the text, reinforce SEBI’s use of market access restrictions combined with monetary remedies such as disgorgement and interest.

Key facts at a glance

Social media angle: Telegram, WhatsApp and X in a separate SEBI order

The material also references another SEBI interim order that described how an alleged stock manipulation network used social media platforms including Telegram, WhatsApp and X. In that matter, SEBI said prices of select SME stocks were artificially inflated before shares were offloaded at higher levels.

In the 234-page order cited, SEBI barred Hemant Gupta, Rohan Gupta, Aniket Gupta and four others from accessing capital markets. It also stopped them from offering unregistered research analyst services and ordered impounding of Rs 20.25 crore described as “unlawful” gains. SEBI’s investigation in that case found the scheme was executed across 82 stocks during the investigation period, generating prima facie wrongful gains of around Rs 20.25 crore.

Darshan Orna case: penalties of Rs 3.10 crore and Telegram circulation

In another action cited in the text, SEBI imposed penalties totalling Rs 3.10 crore on five entities after finding they orchestrated a pump-and-dump scheme in Darshan Orna Limited (DOL). SEBI said the activity involved coordinated trading and stock recommendations circulated on Telegram channels.

The entities named are Aakash Doshi, Kevin Kapadia, Dilip Doshi, Richi Dilip Doshi and Kruti Kevin Kapadia. Penalties listed include Rs 0.90 crore on Aakash Doshi, Rs 1.40 crore on Dilip Doshi, Rs 0.60 crore on Richi Dilip Doshi, and Rs 0.20 crore jointly and severally on Kevin Kapadia and Kruti Kevin Kapadia.

Wider enforcement push: searches across cities and devices seized

The text also points to a broader enforcement push. SEBI carried out search and seizure operations in connection with a suspected pump-and-dump network spanning multiple cities, with locations cited as Mumbai, Bhuj, Surat, Bengaluru, and Hyderabad.

A separate description says SEBI executed search operations across more than 80 locations over three days and confiscated data from over 100 computers and 150 mobile phones. SEBI also clarified that it conducted search and seizure operations at multiple locations in June 2025 in connection with pump-and-dump activity in certain scrips, and that the investigation was in progress.

Market impact and why these orders matter

SEBI’s actions combine three tools that directly affect market participants: long market bans (up to seven years), monetary penalties, and disgorgement with interest. In the five-stock case, the penalties cited total Rs 47.7 crore, while the disgorgement figure cited is Rs 143.79 crore with 12 percent annual interest from October 21, 2020. These remedies raise the financial cost of alleged manipulation beyond fines alone by targeting the gains and applying interest for the intervening period.

The repeated references to Telegram and other platforms show how enforcement is extending beyond trading patterns to the channels used to influence investor behaviour. SEBI’s directions to stop certain individuals from offering unregistered research analyst services, and its impounding order of Rs 20.25 crore in another matter, also signal focus on both market conduct and the flow of stock “calls” used to build momentum.

Conclusion

SEBI’s order barring 222 entities in the five-stock case, along with penalties of Rs 47.7 crore and disgorgement directions, sits alongside other recent actions tied to coordinated trading and social media-driven stock promotion. The regulator has also disclosed expanded search and seizure activity and stated that investigations are ongoing in certain cases. The next milestones in such matters typically include compliance with disgorgement directions, appeals if filed, and further investigation outcomes where SEBI has said probes remain in progress.