&w=3840&q=100)
Why has Sebi barred Arshad Warsi from the securities market for a year?
According to a Sebi order issued, both Warsi and Goretti were fined ₹5 lakh each and prohibited from participating in the securities market for one year, news agency PTI reported.
Earlier in March 2023, Sebi took action against Warsi, his wife, and several others in a related case involving misleading YouTube videos promoting shares of Sadhna Broadcast Ltd. In the order, Sebi had directed the impounding of illegal gains amounting to ₹41.85 crore accrued by the entities involved in the pump-and-dump scheme. It also ordered all 31 individuals to open an escrow account with a scheduled commercial bank and deposit the impounded amount within 15 days.
Hefty penalties and disgorgement orders
On Thursday (May 29), Sebi imposed penalties ranging from ₹5 lakh to ₹5 crore on the 57 other individuals and entities involved, including key promoters of Sadhna Broadcast. The order also directed all 59 entities to jointly and severally disgorge illegal gains amounting to ₹58.01 crore, along with 12 per cent interest per annum, from the end of the investigation period until the payment is made.
Sebi's findings revealed that Warsi and his wife earned illicit profits of ₹41.70 lakh, and ₹50.35 lakh, respectively.
Who are the masterminds behind the scheme?
In its detailed 109-page order, Sebi identified Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra as the masterminds of the scheme. Subhash Aggarwal, who served as a director at the registrar and transfer agent of Sadhna Broadcast, acted as a liaison between Mishra and the company's promoters.
'These individuals were the central characters who planned and executed the manipulative scheme,' the regulator said.
How the scam was orchestrated
According to Sebi, Peeyush Agarwal, a dealer at Choice, and Lokesh Shah, owner of the Delhi franchise of a stockbroker, facilitated accounts for Manish Mishra and the promoters of Sadhna Broadcast to execute trades that manipulated the stock price.
Jatin Shah also played a significant role in operationalising the scheme, while other participants either enabled the manipulative activities or sought quick profits, the order said.
Sebi noted that although some entities did not trade from their own accounts, they acted as information carriers or assisted in placing manipulative trades.
Two-phase pump-and-dump scheme
The regulator outlined a two-phase plan to manipulate the stock price:
Phase 1: Connected and promoter-linked entities traded among themselves to steadily inflate the price of Sadhna Broadcast shares. Despite small trade volumes, the low liquidity of the scrip allowed these trades to disproportionately influence the price, creating an illusion of investor interest.
Phase 2: Misleading and promotional videos were published on YouTube channels such as Moneywise, The Advisor, and Profit Yatra — all operated by Manish Mishra — to lure retail investors. These videos coincided with the artificial price surge and recommended SBL as a promising investment opportunity.
Additional actions and ongoing proceedings
Sebi clarified that Varun Media Pvt Ltd — a promoter entity — would not be fined due to ongoing insolvency proceedings, but the direction for disgorgement remains in place.
The regulatory action follows complaints received between July and September 2022, alleging price manipulation and offloading of shares in Sadhna Broadcast. Investors flagged misleading YouTube videos that falsely promoted the company to lure unsuspecting buyers.
Sebi subsequently launched a detailed investigation into trading activities in SBL's shares between March 8, 2022, and November 30, 2022. The regulator had already issued an interim order on March 2, 2023, against 31 entities, including promoters of SBL.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
14 minutes ago
- Business Standard
Best of BS Opinion: India at 79: A test of resilience, reform, reckoning
India's 79th Independence Day arrives as both a celebration and a stocktake. The unity that has defined the Republic has been tested repeatedly, most recently during Operation Sindoor, when India retaliated to a terror strike in Pahalgam by targeting Pakistan-based terror and military infrastructure. The response showcased a sharper counterterrorism posture, but the moment also underlines wider challenges, notes our first editorial. India's economic strength, the fastest-growing among large economies, has lifted millions out of poverty, yet the goal of becoming a developed nation by 2047 demands sustained growth in a tougher global climate. Meanwhile, corporate governance is confronting its own reckoning. At the 2025 Annual Directors Conclave, Sebi chairman Tuhin Kanta Pandey reminded independent directors they are not 'honorary appointees or friendly critics.' His warning follows the Gensol Engineering case. Similar failures at Satyam, IL&FS, Yes Bank, and Paytm Payments Bank have exposed a culture where promoter influence often overrides oversight, highlights our second editorial. With 549 voluntary resignations in FY25, including 154 this year, the environment for corporate oversight is shifting fast. K P Krishnan writes on India's leading financial regulators, RBI, Sebi, and Irdai, which continue to be led by former IAS officers, reflecting a comfort with administrative experience but also an institutional shortfall. In mature economies, leadership is drawn from academia, industry, and public administration, bringing varied perspectives. India's absence of transparent, rule-based processes has made it harder for outsiders to thrive. Implementing reforms like those in the draft Indian Financial Code could open the field and create more resilient regulatory institutions. Domestic institutional investors have overtaken foreign institutional investors in equity holdings for the first time in 25 years, with Rs 14 trillion in equities versus FIIs' Rs 10 trillion. Since 2014-15, DIIs have grown at an average 42 per cent annually, fuelled by retail participation and steady inflows. FIIs, once the dominant market movers, have seen their correlation with the Sensex fade, while DIIs now set the tone, argues Janak Raj. High valuations may keep foreign flows muted, leaving domestic money as the primary force in the market. Finally, in To Lose a War: The Fall and Rise of the Taliban, reviewed by Elliot Ackerman, veteran correspondent Jon Lee Anderson follows Afghanistan's story from the Taliban's ouster in 2001 to their return in 2021. Drawing on two decades of frontline reporting, Anderson captures early optimism, mounting insurgency, and the missteps that shaped the war's outcome. The book closes with the lesson that withdrawing from reconstruction, as in the 1980s, can invite renewed instability, a warning with resonance far beyond Afghanistan. Stay tuned!
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
Sebi chief Pandey calls for stronger defence against cyberattacks
Tuhin Kanta Pandey, chairman, the Securities and Exchange Board of India (Sebi), on Thursday stressed the need for constant vigilance, regular incident-response drills, and forensic readiness to guard against escalating cyber threats. Speaking at a cybersecurity training programme for regulated entities at the National Institute of Securities Markets (NISM), Pandey warned that even the perception of vulnerability can unsettle markets, irrespective of immediate financial losses. Recalling the 2010 Nasdaq breach — where hackers accessed a system used by corporate boards to share confidential documents — he noted that while trading was unaffected, the incident 'deeply shook confidence.' Sebi has, in recent years, strengthened cybersecurity norms, mandated regular cyber audits, and tightened reporting on technical glitches across exchanges, clearing corporations, depositories, and market intermediaries. Safeguarding these 'market utilities,' he added, is essential for capital formation, investor trust, and economic resilience. Cyberattacks, he cautioned, are no longer rare. India witnessed over 2 million security incidents in 2024, according to CERT-In, nearly double the pre-pandemic levels. 'A small glitch in a trading algorithm can trigger market disruption in milliseconds. A misconfigured server can give malicious actors a way in. A compromised account can lead to damaging data leaks,' Pandey said, citing the 2012 Knight Capital fiasco that caused $440 million in losses due to faulty trading software. He stressed that internal lapses — such as inadequate checks, rushed deployments, or overlooked processes — can be as damaging as external threats. 'Technology risk isn't always about defending the gates. Sometimes it's about ensuring the castle's own walls are strong,' he remarked. Pandey also underlined the human factor as a critical line of defence, noting that negligence and phishing attacks often open the door to breaches. 'Proactive measures reduce both the probability and the impact of incidents. Reactive measures merely limit damage after trust has already been dented,' he said. In closing, Pandey told the participants that their quiet efficiency would likely never make headlines — but that the absence of crisis is their greatest professional achievement. 'Behind the seamless flow of billions in our markets lies your invisible vigilance,' he added.
Time of India
an hour ago
- Time of India
Six cases booked over provocative SM posts
Mangaluru: Dakshina Kannada district police registered six separate cases in two days against individuals accused of posting derogatory, obscene, and inflammatory content on social media platforms. The complaints, lodged at Belthangady and Venur police stations on Tuesday and Wednesday, allege that the accused targeted religious communities, posted obscene remarks, incited violence, and promoted caste-based enmity through Facebook and YouTube. In one case, Ajith Nagappa Basapur,32, of Chabbi village, Hubballi, alleged that activist Girish Mattennavar of Ujire, Belthangady, made insulting remarks about the Jain religion and its followers during an interview with the 'Kudla Rampage' YouTube channel. The channel's owner allegedly uploaded the video, hurting the religious sentiments of Jains. Belthangady police booked the duo under Sections 196(1)(A) and 299 of the Bharatiya Nyaya Sanhita (BNS), 2023. In another complaint, Vijaya,41, of Belthangady, said she found an obscene post related to the Sowjanya case on a Facebook account named 'Vikas Vicky Hindu.' Venur police registered a case under Section 296 of BNS. Similarly, Dhananjay Jain,47, of Belthangady, alleged that a Facebook account titled 'Enri Gowdre' posted obscene messages. Venur police booked the case under Section 296 of BNS. On Aug 13, Prabhakar Gowda,51, of Belthangady, alleged that a Facebook user, "Lawyer Jagadeesh," posted a video related to the ongoing exhumation work in Dharmasthala, as part of the alleged mass burial case, allegedly inciting the public to commit offences by promoting unlawful assembly and use of deadly weapons. Belthangady police registered a case under Section 57 read with Sections 189(6) and 191(3) of BNS. In another case, the same complainant alleged that Lokesh Poojary posted messages on Facebook about Koti Chennaya, which could incite caste-based enmity and spread false rumours. Police booked the case under Section 353(2) of BNS at the Belthangady police station . In another case, Uday Poojary, 41, of Belthangady, alleged that Naveen Jain uploaded videos on YouTube, encouraging people to unlawfully assemble and commit offences that could disturb public peace. A case was registered under Section 57 read with Sections 189 and 190 of BNS at the Belthangady police station. Police said investigations are ongoing in all six cases. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area. Get the latest lifestyle updates on Times of India, along with Happy Independence Day wishes , messages , and quotes !
