SEBI Bans Actor Arshad Warsi, 58 Others in Sadhna Broadcast Share Scam
Business: Bollywood actor Arshad Warsi, his wife, brother, and 58 others have been accused of a major stock market scam. The Securities and Exchange Board of India (SEBI) has imposed a one-year ban on all of them. Additionally, several individuals have been fined ₹5 lakh each, and ₹1.05 crore in illegally earned profits have been ordered to be seized. This action pertains to manipulation of Sadhna Broadcast Ltd. shares.
Stock Market Fraud Case
SEBI's investigation revealed that these individuals artificially inflated the price of Sadhna Broadcast Ltd. shares before selling them at inflated prices. This is known as a Pump and Dump Scam; misleading the public to drive up the share price before selling and profiting.
Modus Operandi: YouTube Videos and Social Media
According to SEBI's report, misleading YouTube videos were used to execute this scam. These videos portrayed Sadhna Broadcast shares as excellent investments, encouraging viewers to invest. Once significant buying occurred, the share price rose sharply. The accused then sold their shares at inflated prices, making substantial profits.
Individuals Banned
SEBI's order bans Arshad Warsi, his wife Maria Goretti Warsi, his brother, and 58 others from the stock market for one year. SEBI stated that these individuals were involved in fraudulent market activities, necessitating their exclusion from the market.
Fines and Confiscation of Illegal Earnings
SEBI imposed not only bans but also significant financial penalties. Several accused were fined ₹5 lakh each. Furthermore, ₹1.05 crore in illegally earned profits were ordered to be seized. One accused, Gaurav Gupta, made the most profit, approximately ₹18.33 crore. Sadhna Bio Oils Private Limited also profited ₹9.41 crore. All these amounts must be repaid.
WhatsApp Chats Reveal Key Details
SEBI's investigation uncovered WhatsApp chats indicating that an individual named Manish Mishra planned to transfer funds to Arshad Warsi and his family. It is alleged that ₹25 lakh each was intended for Arshad Warsi, his wife, and his brother.
Involved YouTube Channels
SEBI identified five YouTube channels involved in the scam:
- The Advisor
- Midcap Calls
- Profit Yatra
- Moneywise
- India Bullish
These channels misled the public, encouraging investment in Sadhna Broadcast shares.
SEBI's Strict Action
SEBI's order emphasizes its commitment to market transparency and investor protection. SEBI banned seven individuals for five years and 54 others for one year. This demonstrates SEBI's firm stance against such fraudulent activities.
