Sebi Bars Actor Arshad Warsi, Wife Maria Goretti, and 57 Others in Sadhna Broadcast Market Manipulation Case

Sebi Bars Actor Arshad Warsi, Wife Maria Goretti, and 57 Others in Sadhna Broadcast Market Manipulation Case

Last Updated May - 30 - 2025, 04:58 PM | Source : Fela News

Sebi bars Arshad Warsi, wife Maria Goretti, and 57 others from securities markets for up to 5 years in a pump-and-dump scam involving Sadhna Broadcast. ₹58 cror

The Securities and Exchange Board of India (Sebi) has barred Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 other individuals from participating in the securities market for periods ranging from one to five years. The action comes in connection with a case involving misleading stock tips shared via YouTube videos, encouraging investors to buy shares of Sadhna Broadcast.

Fines and Restrictions on the Couple

According to Sebi’s order issued Thursday, Arshad Warsi and Maria Goretti have each been fined ₹5 lakh and prohibited from trading in the securities market for one year. In total, 59 entities—including key promoters of Sadhna Broadcast (now renamed Crystal Business System Ltd)—have been penalized, with fines ranging from ₹5 lakh to ₹5 crore.

In addition to market bans, Sebi has ordered all 59 entities to collectively return ₹58.01 crore in unlawful gains, with 12% annual interest, from the end of the investigation period until the full amount is repaid. Sebi stated that Arshad Warsi earned ₹41.70 lakh in profit, while Maria Goretti gained ₹50.35 lakh.

Main Conspirators and Key Facilitators

The regulator identified Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra as the masterminds of the scheme. Subhash Aggarwal, a director of the registrar and transfer agent for Sadhna Broadcast Ltd (SBL), played an intermediary role between Mishra and the company's promoters.

Further investigation revealed that Peeyush Agarwal and Lokesh Shah provided access to trading accounts that were exploited for manipulation. Agarwal was a dealer at Choice Broking, and Shah owned a Delhi-based franchise of the brokerage. Their participation was critical in executing the manipulation, while Jatin Shah was instrumental in carrying out the scheme.

Although many of the accused did not use their own accounts to trade the stock, Sebi noted their roles in carrying information or facilitating the manipulative activities.

Details of the Pump-and-Dump Scheme

Sebi’s 109-page order explains that the scheme was executed in two phases. Initially, interconnected entities—including promoters—conducted circular trades among themselves to steadily inflate SBL’s share price, creating a deceptive appearance of investor interest. The low liquidity of the stock meant that even low-volume trades could significantly move the price.

The second phase involved releasing misleading promotional content on YouTube channels such as Moneywise, The Advisor, and Profit Yatra, all run by Manish Mishra. These videos painted SBL as a strong investment, strategically timed to coincide with the artificial trading activity and lure retail investors.

Sebi’s whole-time member Ashwani Bhatia remarked, “The conduct of the noticees is indicative of a classic pump-and-dump operation,” where prices are artificially inflated through manipulative trading and promotional hype, followed by a coordinated sell-off by insiders.

Other Observations

Although no financial penalty was levied on Varun Media Pvt Ltd—one of SBL’s promoter entities—due to ongoing insolvency proceedings, Sebi maintained that the firm is still liable for disgorgement, and a separate order will address the matter.

The investigation began after Sebi received complaints between July and September 2022 about suspicious trading patterns and misleading YouTube videos related to SBL shares. The investigation covered the period from March 8 to November 30, 2022. An interim order in March 2023 had already restrained 31 entities, including the company’s promoters.

Upcoming Film

Despite the controversy, Arshad Warsi is set to return to the big screen in Jolly LLB 3, where he will star alongside Akshay Kumar, Amrita Rao, Huma Qureshi, Saurabh Shukla, and Annu Kapoor. Directed by Subhash Kapoor, the film is scheduled for release on September 19.

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