In a major crackdown on stock market manipulation, India’s market regulator SEBI (Securities and Exchange Board of India) has barred Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 other entities from accessing the securities market for a period ranging from one to five years.
The decision was taken on Thursday as part of SEBI’s action in a case involving misleading YouTube videos that promoted stock manipulation, particularly of the company Sadhna Broadcast Ltd.
🎥 Case Tied to Misleading YouTube Promotions of Penny Stocks
The SEBI investigation revealed that several YouTube channels released deceptive videos suggesting that Sadhna Broadcast shares were set to rise, prompting retail investors to purchase the stock in large numbers. The actors allegedly benefitted from inflated stock prices, thereby violating market norms.
The fraudulent campaign had a direct impact on the stock price movement, and the involved individuals reportedly offloaded their holdings at inflated rates, earning unfair profits.
⚖️ Financial Penalty Imposed: ₹5 Lakh Each on Arshad and Maria
Apart from the trading ban, SEBI has also imposed a monetary fine of ₹5 lakh each on Arshad Warsi and Maria Goretti. The regulator stated that the couple was involved in manipulative trades and unjust enrichment, based on misleading recommendations.
🏢 Company Under Scrutiny: Sadhna Broadcast Now Rebranded
The company involved in the case, formerly known as Sadhna Broadcast, has since been rebranded as Kristel Business Systems Ltd. However, SEBI found the entity’s promoters and associated individuals liable for creating a false market environment.
💰 Total Illicit Gains in Crores: Broad Market Impact
According to SEBI’s findings, the total illegal profit made by the 57 entities, including Arshad Warsi, amounts to several crores of rupees. The manipulation affected market integrity and misled countless retail investors.
