The Securities and Exchange Board of India (SEBI) has barred actor Arshad Warsi, his wife Maria Goretti, and 57 other individuals from accessing the securities market for a period ranging from one to five years. The penalties were imposed in connection with a market manipulation scheme involving Sadhna Broadcast Ltd, now known as Crystal Business System Ltd.
SEBI bans Arshad Warsi, wife Maria Goretti for one year in market manipulation case
One-Year Ban for Arshad Warsi and Maria Goretti
As per SEBI’s final order, both Arshad Warsi and Maria Goretti have been fined Rs 5 lakh each and prohibited from trading in the securities market for one year. The market regulator also revealed that Arshad made profits of Rs 41.7 lakh, while Maria earned Rs 50.35 lakh from the scheme.
In total, 59 entities have been directed to jointly and severally disgorge unlawful gains amounting to Rs 58.01 crore, along with 12% interest per annum from the end of the investigation period until full repayment.
Pump-and-Dump Scheme Uncovered
SEBI’s 109-page order detailed a “classic pump-and-dump” strategy executed in two phases:
- Phase 1: Promoter-linked entities engaged in collusive trades to inflate the stock price of Sadhna Broadcast, creating an artificial appearance of market interest.
- Phase 2: Misleading promotional videos were released on YouTube channels such as Moneywise, The Advisor, and Profit Yatra — all operated by accused Manish Mishra — to attract unsuspecting retail investors. These videos timed with the inflated market activity enabled the perpetrators to offload their shares at higher prices.
Key Figures Identified
SEBI identified Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra as the masterminds of the operation. Subhash Aggarwal acted as an intermediary between Mishra and the promoters, while Peeyush Agarwal and Lokesh Shah were found to have facilitated the use of certain accounts for executing manipulative trades. Jatin Shah was also named as a key player in implementing the scheme.
The regulator noted that while several entities did not trade using their own accounts, they acted as information carriers or supported manipulative trading practices.
Violations and Legal Consequences
All 59 entities were found to have violated SEBI’s Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations. Apart from fines ranging between Rs 5 lakh and Rs 5 crore, SEBI has initiated steps to recover the ill-gotten gains from the accused parties.
No monetary penalty has been levied on Varun Media Pvt Ltd, a promoter entity, due to ongoing insolvency proceedings. However, the disgorgement direction will remain in force.
Background of the Case
SEBI began investigating the matter after receiving complaints between July and September 2022 about potential price manipulation and misleading YouTube content promoting Sadhna Broadcast. A preliminary interim order was passed in March 2023 against 31 entities, including the company’s promoters. The final order, passed by SEBI Whole-Time Member Ashwani Bhatia, consolidates findings from the full investigation covering March 8 to November 30, 2022.
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