In a significant move against financial misconduct, the Securities and Exchange Board of India (SEBI) has barred Bollywood actor Arshad Warsi, along with his wife Maria Goretti and brother Anwar Warsi, from accessing the securities market for one year. The action stems from their alleged involvement in a ‘pump and dump’ scheme related to Sadhna Broadcast Ltd (SBL).
The Fraudulent Scheme
SEBI’s investigation, which covered the period from March 8, 2022, to November 30, 2022, revealed a coordinated effort to artificially inflate the share price of SBL. The manipulation was executed through a combination of structured trading, misleading promotional content, and a paid YouTube campaign. Once the stock price surged, insiders offloaded their holdings for substantial profits, leaving retail investors exposed to steep losses.
Five YouTube channels—The Advisor, Midcap Calls, Profit Yatra, Moneywise, and India Bullish—were found to have played key roles in spreading false and misleading information about SBL’s financial health and prospects.
Arshad Warsi’s Involvement
While Arshad Warsi publicly claimed ignorance of stock market practices, SEBI’s findings painted a different picture. WhatsApp communications between Warsi and Manish Mishra, the central figure in the scam, indicated an understanding of the scheme. These chats revealed discussions about transferring Rs 25 lakh each to Arshad Warsi, his wife, and his brother.
According to SEBI, Arshad Warsi made profits amounting to Rs 41.70 lakh, while his wife Maria Goretti earned Rs 50.35 lakh through trades in SBL shares during the manipulated period.
SEBI’s Penalties and Actions
SEBI's final order was part of a broader crackdown on market manipulation and included:
A five-year market ban for seven key individuals.
A one-year market ban for 54 others, including Arshad Warsi and his family members.
A Rs 5 crore penalty on mastermind Manish Mishra.
Rs 2 crore fines on accomplices like Gaurav Gupta.
A Rs 1 crore fine on Jatin Manubhai Shah.
A Rs 5 lakh fine each on Arshad Warsi and Maria Goretti.