Arshad Warsi made Rs 41.7 lakh, wife Rs 50.35 lakh in YouTube stock scam; Sebi bans couple for 1 year
PTC Web Desk: In a major crackdown on stock market manipulation, 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 markets for periods ranging from one to five years. The action comes in connection with a well-coordinated pump-and-dump scheme involving misleading YouTube videos promoting shares of Sadhna Broadcast Ltd, now known as Crystal Business System Ltd.
As per the final order issued on Thursday, Sebi has also imposed monetary penalties — Rs 5 lakh each on Warsi and Goretti — and directed a collective disgorgement of Rs 58.01 crore in unlawful gains made by all 59 entities involved. These gains are to be returned with 12% annual interest from the end of the investigation period until the date of full payment.
The market regulator found that Arshad Warsi had profited Rs 41.70 lakh, while Maria Goretti earned Rs 50.35 lakh during the manipulative scheme.
Pump-and-Dump operation uncovered
According to Sebi’s 109-page order, the scheme was orchestrated in two phases. In the first phase, promoter-linked and connected entities engaged in internal trading to artificially inflate the price of Sadhna Broadcast shares. These trades, though small in volume, significantly impacted the stock’s price due to low liquidity.
In the second phase, misleading promotional videos were published across YouTube channels such as Moneywise, The Advisor, and Profit Yatra, all run by Manish Mishra — one of the masterminds behind the operation. These videos falsely portrayed SBL as a lucrative investment, driving unsuspecting retail investors to buy into the hype.
Once public interest surged and prices peaked, the accused entities systematically offloaded their shares for massive profits — a textbook example of a pump-and-dump fraud, Sebi noted.
Key players and facilitators
The core conspirators identified by Sebi include Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra, who strategised and executed the manipulation. Subhash Aggarwal, a director of the RTA (Registrar and Transfer Agent) of SBL, acted as a liaison between Mishra and the promoters.
Others who played key facilitation roles include Peeyush Agarwal – a dealer at Choice Broking, and Lokesh Shah – owner of a Delhi-based franchise of the stockbroker. Sebi also named Jatin Shah for operationalising the scheme and managing execution across various accounts.
Although several entities didn’t trade directly, they were found guilty of aiding the manipulation or acting as information conduits.
No relief for insolvent promoter
While Varun Media Pvt Ltd, a promoter entity currently undergoing insolvency proceedings, has been spared from financial penalties for now, Sebi clarified that disgorgement orders remain in place and a separate ruling will follow.
Background of the case
The probe began after multiple investor complaints between July and September 2022 alleged that Sadhna Broadcast’s stock was being artificially inflated using misleading online content. Sebi investigated trading patterns from March 8 to November 30, 2022, confirming fraudulent activity. An interim order in March 2023 had already barred 31 of the implicated entities.
Sebi’s final order, signed by Whole-Time Member Ashwani Bhatia, concluded that the actions of the accused violated the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) norms under Indian securities law.
- With inputs from agencies
