The Securities and Exchange Board of India (Sebi) has imposed a one-year stock market trading ban on Bollywood actor Arshad Warsi, his wife Maria Goretti, and his brother for their involvement in the manipulation of Sadhna Broadcast Ltd shares, now known as Crystal Business System Ltd. The regulatory body has fined the trio ₹5 lakh each and ordered the return of ₹1.05 crore in illegal gains.
According to Sebi, the group was part of a “pump and dump” scheme that artificially boosted the share price of Sadhna Broadcast using false and misleading information before dumping the stock on unsuspecting retail investors. The market regulator uncovered WhatsApp messages and transactions indicating coordination between the Warsis and key conspirator Manish Mishra, who allegedly orchestrated the scheme using misleading YouTube videos and paid promotions. While Arshad Warsi claimed he was a novice in stock trading, Sebi’s investigation revealed that he was actively trading using his own, his wife’s, and his brother’s accounts. His statement was recorded by Sebi on June 27, 2023.
Sebi has banned a total of seven individuals for five years and 54 others for one year, highlighting the widespread nature of the scam. The manipulation occurred between March 8 and November 30, 2022, with nearly 45% of total trades during this period traced back to connected accounts.
The fraudulent scheme used social media to create artificial hype. YouTube channels such as The Advisor, Midcap Calls, Profit Yatra, Moneywise, and India Bullish falsely portrayed Sadhna Broadcast as a high-growth stock. These channels misled retail investors, many of whom were unaware of the company’s actual financial condition.
Among the highest profiteers were Gaurav Gupta, who earned ₹18.33 crore, and Sadhna Bio Oils Pvt Ltd, which gained ₹9.41 crore. Sebi has ordered both parties to return their unlawful profits. Manish Mishra has been fined ₹5 crore, while others such as Rakesh Kumar Gupta, Subhash Agarwal, Piyush Agarwal, Lokesh Shah, and Jatin Manubhai Shah received penalties ranging from ₹1 crore to ₹2 crore.
One IPS officer involved settled the case under Sebi’s settlement regulations, avoiding a ban by paying the required amount. This final order follows Sebi’s interim order from March 2023 and showcases how social media platforms like YouTube are being weaponized for stock fraud. The case is a warning to retail investors to remain vigilant, avoid baseless stock tips, and always cross-verify investment advice from credible sources.
