**Sebi Bars Arshad Warsi and Others from Securities Market Over Manipulation**
The Securities and Exchange Board of India (Sebi) has imposed a ban on Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 other entities from participating in the securities market for a period ranging from one to five years. This action stems from a case involving misleading promotional videos on YouTube that encouraged investors to purchase shares of Sadhna Broadcast.
In a ruling issued on Thursday, Sebi fined both Warsi and Goretti ₹5 lakh each and prohibited them from engaging in securities trading for one year. Additionally, the regulator has imposed fines ranging from ₹5 lakh to ₹5 crore on the other 57 entities involved, including the promoters of Sadhna Broadcast, which is now known as Crystal Business System Ltd.
Sebi has also mandated that these 59 entities collectively return unlawful gains totaling ₹58.01 crore, along with an interest rate of 12 percent per annum from the conclusion of the investigation until the actual payment is made. The investigation revealed that Arshad Warsi profited by ₹41.70 lakh, while Maria Goretti earned ₹50.35 lakh from the scheme.
The investigation identified Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra as the primary orchestrators of the manipulative scheme. Subhash Aggarwal, a director of the Registrar and Transfer Agent for Sadhna Broadcast Ltd, acted as an intermediary between Mishra and the promoters. These individuals were central to the planning and execution of the scheme.
Sebi’s findings also highlighted the roles of Peeyush Agarwal and Lokesh Shah, who facilitated accounts under their control for the manipulative activities orchestrated by Mishra and the promoters. Agarwal was a dealer at Choice, while Shah owned the Delhi franchise of the stockbroker, both of whom played crucial roles in the large-scale manipulation of the stock.
The scheme was executed in two coordinated phases. Initially, connected entities engaged in trades among themselves to artificially inflate the stock price, creating a false sense of market interest. These trades, although small in volume, had a significant impact on the stock price due to low liquidity, allowing the perpetrators to elevate the stock with minimal trading costs.
In the second phase, misleading promotional videos were released on YouTube channels such as Moneywise, The Advisor, and Profit Yatra, all managed by Manish Mishra. These videos portrayed Sadhna Broadcast as a lucrative investment opportunity, strategically timed to coincide with and enhance the artificial market activity.
In conclusion, Sebi’s decisive action against Arshad Warsi and the other involved entities underscores the importance of maintaining integrity in the securities market and protecting investors from deceptive practices.
**FAQ**
**What was the reason for Sebi’s action against Arshad Warsi and others?**
Sebi took action due to their involvement in a scheme that used misleading YouTube videos to manipulate the stock price of Sadhna Broadcast, resulting in significant unlawful gains.
