The Securities and Exchange Board of India (Sebi) has barred actor Arshad Warsi, his wife Maria Goretti, his brother, and 56 others from participating in the stock market for one year. This follows Sebi’s investigation into a stock manipulation case involving Sadhna Broadcast Ltd (now Crystal Business System Ltd).
Sebi found that the group was involved in a “pump and dump” scheme, artificially inflating the share price of Sadhna Broadcast using false information before selling shares to unsuspecting retail investors. The probe revealed that misleading YouTube videos and paid campaigns by channels like The Advisor and Midcap Calls created false buzz, encouraging investments.
Arshad Warsi and associates worked with Manish Mishra, who orchestrated the manipulation. WhatsApp chats showed Mishra offering to transfer Rs 25 lakh each to Warsi, his wife, and brother. Sebi also noted that Warsi traded using his own and family members’ accounts.
In total, seven individuals were banned for five years, while 54 others, including Warsi’s family, received one-year bans. Each was fined Rs 5 lakh, and they must return illegal gains totaling Rs 1.05 crore.
Manish Mishra faced a Rs 5 crore fine; others involved received penalties ranging from Rs 1 crore to Rs 2 crore. Gaurav Gupta and Sadhna Bio Oils Pvt Ltd earned illicit profits of Rs 18.33 crore and Rs 9.41 crore, respectively, and were asked to return the money.
This case underscores the risks of relying on social media tips and highlights Sebi’s commitment to protecting investors from fraudulent schemes.