SEBI penalises four in Moksh Ornaments Telegram manipulation case

The Enforcement Action

SEBI's adjudicating officer Jai Sebastian, in an order dated 30 July 2026, imposed monetary penalties totalling Rs 55 lakh on four individuals in the matter of market manipulation using social media in the scrip of Moksh Ornaments Limited (MOL), a company listed on the National Stock Exchange. The order, numbered Order/JS/YK/2026-27/32530-32542, was passed under section 15-I of the SEBI Act, 1992 read with rule 5 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995.

Per the order, the penalties fall on Mr Amesh Surajlal Jaiswal (described as Noticee 10), Mr Jalaj Agrawal (Noticee 11), Mr Arvind Shukla (Noticee 12) and Mr Aviral Saxena (Noticee 13). SEBI directed Mr Jaiswal to pay Rs 20 lakh, comprising Rs 15 lakh under section 15HA and Rs 5 lakh under section 15HB. Mr Agrawal was directed to pay Rs 15 lakh, and Mr Shukla and Mr Saxena Rs 10 lakh each, all under section 15HA. The amounts are payable within 45 days of receipt of the order.

Notably, the adjudicating officer disposed of the proceedings against the other nine noticees, numbered 1 to 9, without imposing any penalty. SEBI had alleged that Noticee 1, Mr Anupam Narain Gupta, was the main perpetrator who accumulated MOL shares and offloaded them after the misleading messages circulated. The order records that the officer was "unable to hold" that allegation against Noticees 1 to 9, finding the trading pattern did not support it. Of the penalised parties, Noticees 12 and 13 contested the charge, while Noticee 10 did not respond and was proceeded against ex-parte.

How the Scheme Worked

According to the order, SEBI began by investigating scrips in which stock tips were being circulated on Telegram channels. During search and seizure operations, it seized the digital device of Mr Jalaj Agrawal, described in the order as a middleman or operator. Data extracted from that device, the order states, revealed WhatsApp messages exchanged on 1 February 2022 between Mr Agrawal and Mr Jaiswal regarding a buy recommendation in MOL, complete with entry price, stop loss, buy quantity and target prices, and carrying the claim of "at least 40-50% return in 5-7 days".

The order describes a chain. Mr Agrawal, per his recorded statement, forwarded the messages he received from Mr Jaiswal to Mr Saxena and Mr Shukla for posting in their Telegram groups, which the order names as "Sure Means Sure" and "Share market Trading Tips", among others. Mr Shukla and Mr Saxena, according to their statements, each operated multiple channels carrying stock recommendations, with several thousand active subscribers and, on their own account, 1.5 to 2 lakh total subscribers in each channel. The recommendations in MOL were posted on 31 January and 1 February 2022.

The order records that cash changed hands. Mr Shukla stated he received around Rs 20-22 lakh from Mr Agrawal between November 2021 and March 2022 for posting recommendations across scrips, at Rs 20,000 to Rs 25,000 per day, and that Rs 4.5 lakh related specifically to the MOL posts. Mr Saxena gave a similar account of receiving Rs 18-20 lakh in cash over the same window.

The market effect the order documents is stark. SEBI found a 9.09% rise in the closing price on the two recommendation days compared with 28 January 2022, with the number of trades rising more than fivefold and total volume up roughly 374.94%. Thereafter the price fell steadily, closing at Rs 17.55 on 28 February 2022, a decline of 51.72% over 19 trading days from Rs 36.35 on 1 February. The order notes the count of public shareholders jumped from 11,229 on 28 January to 22,248 by 4 February, a rise of 198.13%, as retail investors bought in near the top. Average daily volume during the investigation period was 846% above the pre-period level.

The investigation period ran from 31 May 2021 to 31 March 2022. SEBI issued its show cause notice on 18 June 2025 and, after replies and hearings, passed the final adjudication order on 30 July 2026.

The Law Invoked

The order adjudges the conduct of Noticees 10 to 13 under section 15HA of the SEBI Act, the provision that prescribes penalties for fraudulent and unfair trade practices. It records that they were alleged to have violated sections 12A(a), (b) and (c) of the SEBI Act, which prohibit the use of manipulative and deceptive devices in dealing with securities, read with regulations 3(a), (b), (c), (d) and 4(1), 4(2)(a), 4(2)(k) and 4(2)(r) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003. In plain terms, these prohibit manipulating prices and disseminating misleading information to induce investors to trade.

Separately, the order holds Mr Jaiswal to have violated section 11C(5) of the SEBI Act, which obliges a person to appear before and cooperate with an investigating authority. The order records that summons and reminder summons issued in January and February 2025 went unanswered, and penalises this failure under section 15HB, the residuary penalty provision. The adjudicating officer cited the Supreme Court's ruling in N. Narayanan vs SEBI on the object of preserving market integrity.

What Happens Next

An adjudication order of this kind is a regulator's finding at the end of its own quasi-judicial proceedings, and it is appealable. The noticees may challenge it before the Securities Appellate Tribunal (SAT), and thereafter, on a question of law, before the Supreme Court. Until any such appeal succeeds, the penalties stand.

The order directs the four penalised individuals to pay within 45 days through SEBI's online facility. Per the order, failure to pay may trigger recovery proceedings under section 28A of the SEBI Act, which allows SEBI to recover dues along with interest by attaching and selling movable and immovable property, as seen in the recovery certificates SEBI routinely issues against defaulters.

For Noticees 1 to 9, including Mr Gupta and the broking entities named alongside him, the proceedings are closed without penalty. SEBI retains the ability to pursue any fresh material separately, but on the present record the allegation against them was not upheld.

What It Means

The order is a reminder that a stock "tip" arriving through a Telegram channel or WhatsApp forward carries no regulatory standing, however confident its promised returns. The messages here advertised 40-50% gains in a week; the scrip instead lost more than half its value within a month, and the order shows public shareholder numbers more than doubling just as the price peaked. Those buying on the tips were, in effect, providing the exit.

There are two practical takeaways. First, anyone offering buy or sell recommendations for a fee must be registered with SEBI as a research analyst or investment adviser. Investors can verify this in seconds using the "Intermediaries/Market Infrastructure Institutions" search on the SEBI website, and should treat anonymous channel operators promising fixed returns as an immediate red flag. Second, sudden, unexplained spikes in an obscure small-cap's price and volume, of the kind catalogued in this order, are the documented signature of pump-and-dump schemes. Checking a company's fundamentals and shareholding pattern before acting on a "sureshot" call is the simplest defence.

FAQ

What exactly did SEBI order?

SEBI's adjudicating officer imposed penalties totalling Rs 55 lakh on four individuals for their role in circulating misleading buy recommendations in Moksh Ornaments Limited on Telegram, in violation of the PFUTP Regulations. Nine other noticees faced no penalty. The order is dated 30 July 2026 and numbered Order/JS/YK/2026-27/32530-32542.

Is this SEBI order a criminal conviction?

No. This is a civil adjudication order, not a criminal conviction. SEBI has made a finding of regulatory violation after its own proceedings, and that finding is appealable to the Securities Appellate Tribunal. For the nine noticees against whom the allegation was not upheld, no violation was found at all.

Can the order be appealed?

Yes. Any person aggrieved by a SEBI adjudication order may appeal to the Securities Appellate Tribunal, and thereafter to the Supreme Court on a question of law. The penalties remain payable unless and until an appeal changes the position.

How can I check if a stock adviser is registered with SEBI?

Use the intermediary search on the SEBI website, which lists every registered research analyst and investment adviser with their registration number. Anyone giving paid recommendations without such registration is operating outside the law, and channels promising guaranteed returns should be treated with extreme caution.

Where can I read the official order?

The full order is published on SEBI's website in the enforcement orders section for July 2026, in the matter of Moksh Ornaments Limited. It sets out the noticees, the evidence, the statutory provisions and the penalties in detail.

This report is based on the official SEBI adjudication order dated 30 July 2026 in the matter of Moksh Ornaments Limited, passed by the adjudicating officer under the SEBI Act, 1992.