The Securities and Exchange Board of India (SEBI) has barred Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 other entities from accessing the securities markets for periods ranging from one to five years. The case was initiated against a massive “pump-and-dump” scheme involving misleading YouTube videos aimed at artificially inflating the share price of Sadhna Broadcast Limited (now Crystal Business System Ltd).
According to SEBI’s 109-page final order issued Thursday, the actors were part of a coordinated effort that manipulated the price of Sadhna Broadcast shares using false online promotions. Arshad Warsi and Maria Goretti were each fined ₹5 lakh and banned from the markets for one year. SEBI also ordered that the total unlawful gains of ₹58.01 crore be disgorged by all 59 noticees, with 12% annual interest from the end of the investigation period until payment.
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The investigation revealed that Warsi made profits of ₹41.7 lakh while Goretti earned ₹50.35 lakh by trading the scrip during the manipulated period.
The operation, led by Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra, used popular YouTube channels—such as Moneywise, The Advisor, and Profit Yatra—to promote the company’s stock with exaggerated and false claims, including rumored acquisitions and false financial projections. These videos collectively amassed millions of views, drawing unsuspecting retail investors to buy into the hype at inflated prices.
The manipulative campaign unfolded in two main phases. Initially, connected and promoter-linked entities executed structured trades to inflate the stock price. In the subsequent phase, promotional YouTube content was disseminated to lure retail investors. Once market interest surged, the involved parties offloaded their shares at high valuations.
SEBI highlighted that Jatin Shah, Peeyush Agarwal, and Lokesh Shah played key roles in executing trades and using accounts for the manipulative scheme. Meanwhile, Subhash Agarwal, director of Sadhna’s registrar Skyline Financial, acted as the liaison between Manish Mishra and the company’s promoters.
Notably, the order mentions that some entities, including Varun Media Pvt Ltd, a promoter company currently undergoing insolvency proceedings, were not fined monetarily but remain liable for disgorgement.
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The case surfaced following whistleblower complaints between July and September 2022, prompting SEBI to investigate trading activity between March and November 2022. An interim order had already been passed in March 2023 against 31 entities, which has now culminated in the comprehensive penalties and bans issued.
Describing the scheme as a textbook case of market manipulation, SEBI’s Whole Time Member Ashwani Bhatia said, “Such conduct strikes at the very heart of market integrity. It not only violates the provisions of the PFUTP Regulations, 2003, but also undermines investor trust in the fairness and transparency of the securities market.”
Legal proceedings may still follow as several implicated parties have challenged SEBI’s actions in various High Courts.
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