Sadhna Broadcast case: Sebi bars Arshad Warsi, wife and 57 others from market up to 5 years
MUMBAI: Markets regulator Sebi has barred Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 other entities from participating in securities markets for periods ranging from one to five years in connection with a scheme involving misleading YouTube videos that recommended investors buy shares of Sadhna Broadcast Ltd (now Crystal Business System Ltd).
According to reports the regulator imposed fines of Rs 5 lakh each on Warsi and his wife, who have both been restrained from the securities market for one year, according to a Sebi order issued on Thursday. The youtuber couple was charged for posting misleading videos on YouTube channels recommending investors to buy shares of Sadhna Broadcast.
The other 57 entities, including promoters of Sadhna Broadcast, faced penalties ranging from Rs 5 lakh to Rs 5 crore.
In addition to these penalties, Sebi directed all 59 entities to disgorge unlawful gains totalling Rs 58.01 crore along with 12 percent interest per annum, jointly and severally, from the end of the investigation period until the date of actual payment. The order revealed that Arshad Warsi earned profits of Rs 41.70 lakh, while Maria Goretti made Rs 50.35 lakh from the manipulation.
The Sadhna Broadcast stock manipulation case centers on a coordinated "pump-and-dump" scheme executed through misleading YouTube videos to artificially inflate the company's share price. In mid-2022, videos on channels like The Advisor and Moneywise falsely claimed that Sadhna Broadcast Ltd. would be acquired by the Adani Group, enticing retail investors to purchase shares. This surge in buying volume led to a significant price increase, allowing promoters and insiders to sell their holdings at inflated prices.
The 109-page order identified Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra as the masterminds behind the scheme. Subhash Aggarwal, a director of the registrar and transfer agent (RTA) of Sadhna Broadcast Ltd, acted as an intermediary between Manish Mishra and the promoters. Sebi also named Peeyush Agarwal and Lokesh Shah as facilitators who provided accounts controlled by them to aid the manipulative activities.
The order described the scheme as a classic 'pump-and-dump' operation executed in two phases. Initially, connected and promoter-linked entities executed trades among themselves to inflate the stock price artificially. Due to low liquidity, even small volume trades significantly impacted the price, creating a false market interest. In the second phase, misleading promotional videos were uploaded on YouTube channels such as Moneywise, The Advisor, and Profit Yatra, all run by Manish Mishra, to lure retail investors by amplifying the artificial market activity.
Sebi's whole-time member Ashwani Bhatia stated, 'The overall conduct of the noticees reveals a classic pump-and-dump scheme, involving collusive trading to push prices up, followed by aggressive promotion and a coordinated sell-off by promoters.'
While most entities were penalized, no monetary fine was imposed on Varun Media Pvt Ltd due to ongoing insolvency proceedings, though the company remains subject to disgorgement orders.
The investigation was initiated after complaints received between July and September 2022 alleged price manipulation and offloading of shares in Sadhna Broadcast's stock, facilitated by misleading YouTube videos.
An interim Sebi order was issued on March 2, 2023, against 31 entities, including the promoters, before the final order against 59 parties was passed.
This crackdown highlights Sebi's intensified efforts to curb fraudulent and unfair trade practices in the securities market and protect investors from manipulative schemes.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
11 minutes ago
- Economic Times
PM Vidyalaxmi Scheme: PNB cuts education loan rates by 20 bps; check new interest rates, other details
ET Online PNB education loan under PM Vidya Lakshmi scheme Punjab National Bank (PNB), the second-largest state-owned lender in the country, has announced a reduction of 20 basis points (bps) in its interest rates for education loans offered under the PM Vidyalaxmi scheme, making higher education more accessible for aspiring students. This government-backed initiative aims to provide financial assistance to students enrolled in undergraduate or postgraduate degree/diploma PM Vidyalaxmi scheme is designed to provide comprehensive financial support to students for quality-driven higher education. This initiative is available to students who secure admission on merit to the 860 identified Quality Higher Education Institutions (QHEIs) across India. New FD rates from June 1, 2025: PNB, Canara Bank revise interest rates across tenuresThe scheme is open to Indian nationals, including Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs), who are pursuing graduation or postgraduation degree/diploma courses in Qualified Higher Education Institutions (QHEIs).What is the margin requirement for availing a loan under PM Vidyalaxmi? Financing will be need-based, depending on the specific requirements of the student. Margin requirements for students enrolled in AAA & AA-rated institutes: No margin is other institutes, no margin is required for loans up to Rs 4 lakh; a 5% margin is applicable for amounts above Rs 4 lakh. Interest rates are institute-specific and start at 7.50% per annum Note that collateral is not required under the scheme. However, parents or guardians must be joint borrowers on the loan. Punjab National Bank has categorised Quality Higher Education Institutions (QHEIs) into three groups based on their ratings: Group I, classified as AAA, includes 85 institutions; Group II, labelled as AA, comprises 152 institutions; and Group III, categorised as A, consists of 623 institutions. Students pursuing higher education can avail themselves of interest subvention benefits based on their family's annual income and the type of students enrolled in technical or professional courses, those with an annual family income of up to Rs 4.5 lakh are eligible for 100% interest subvention. If the annual income is between Rs 4.5 lakh and Rs 8 lakh, they can avail a 3% interest subvention under the PM Vidyalaxmi scheme. For students enrolled in other courses, a uniform 3% interest subvention is available under the PM Vidyalaxmi scheme, regardless of whether their family income falls below Rs 4.5 lakh or between Rs 4.5 lakh and Rs 8 lakh. Income Details Technical / Professional courses Other courses Annual income Up to 4.5 lakhs 100% interest subvention(PM-USP CSIS) 3% interest subvention(PM-Vidyalaxmi) Annual income 4.5 lakhs – 8.00lakhs 3% interest subvention(PM-Vidyalaxmi) 3% interest subvention(PM-Vidyalaxmi) Documents required for PM Vidyalaxmi According to the PNB website, below are the documents required: KYC Details (Student)—Aadhaar, PAN ID, and Address Proof. Previous Qualifying self-attested copy of Mark Sheets. Entrance Exam Result. Offer letter from the Institution along with Fee Structure. Passport-size photographs. Previous or existing loans, if any, from Banks/Lenders, banks may obtain suitable documentary evidence. Proof of family Income from designated public authority of the state.
News18
15 minutes ago
- News18
Delhi Police busts sextortion, cyberfraud rackets, 6 held
New Delhi, Jun 3 (PTI) The Delhi Police has busted a sextortion and cyber fraud racket, spanning across multiple states, and have arrested six people in the case, officials said on Tuesday. According to the police, a money trail of over Rs 5 crore has been identified by different teams of Crime Branch. 'On May 24, a tip-off was received regarding the movement of a consignment suspected to contain synthetic bank account kits in New Ashok Nagar area. These kits were reportedly being used in various high-tech crimes such as sextortion, cyber fraud, banking scams, debit/credit card cloning, etc," Deputy Commissioner of Police (Crime) Aditya Gautam said. It was found that the kits were to be delivered and distributed near the Mayur Vihar Phase-1 Extension. A team was formed and an operation was carried out, following which three people, who were in possession of the consignment, were arrested, the DCP said. 'The accused were identified as Ujjawal Pandey (30), Gaurav Barua (24) and Yug Sharma (19). Synthetic bank account kits, pre-activated SIM cards, forged bank documents, debit/credit cards linked to dummy or fraudulent accounts, and mobile devices for real-time transaction control were recovered from them," the DCP said. These items collectively formed called synthetic financial identity allowing cybercriminals to operate untraceable, modular shadow banking systems. Later, a raid was conducted at their instance at an illegal call centre involved in fraudulent bank loan schemes which was functioning in Mundka and seven people were apprehendedm, the DCP added. Among the apprehended individuals, Dilshad Ali emerged as a key operative. Investigations revealed that Ali, along with his associate Amit, was running a fake call centre providing bank loans. Ali acted as the team leader, while Amit, who is absconding, was identified as the owner of the operation. Amit's role involved the procurement and facilitation of fraudulent bank accounts and fake SIM cards, which were further handed over to Ali for use in the scam. The modus operandi of the call centre was to defraud people by offering fake bank loans. Initially, the callers under Ali's direction contacted potential victims offering them attractive loan deals. After gaining the victim's trust, the caller would request identification and other personal documents. The victim was then asked to make a payment through a QR code scanner, under the pretext of file processing fees, said the DCP. After the payment was received, the victim's follow-up messages and calls were ignored. The fraudsters would then switch off their mobile devices and change their contact numbers, effectively cutting off all communication. During investigation, another raid conducted in the New Ashok Nagar area where four other accused were apprehended and an organised sextortion racket was busted, DCP Gautam said. They would send friend requests on social media and obtain victim's mobile number. Later, they would initiate a video call, during which they would stream obscene videos, secretly recording the victim's screen and reactions using screen recording tools. The recorded content was then used to blackmail the victim under threats of publicly circulating the video on social media platforms, thereby coercing them into transferring money, the DCP said. Further investigation in the matter is underway, police added. PTI BM HIG First Published: June 03, 2025, 19:45 IST
Time of India
25 minutes ago
- Time of India
Sebi automates process of invocation, sale of pledged securities
To facilitate ease of doing business and safeguard the investors' interest, markets regulator Sebi on Tuesday decided to automate the process of invocation and sale of pledged securities. This comes after Sebi noted that after invoking pledged securities, brokers often don't sell them, resulting in accumulation in broker accounts. Moreover, brokers face operational issues when clients sell pledged securities, requiring multiple steps like unpledge and delivery, sometimes using physical or digital instructions or POA. "With a view to facilitate ease of doing business as well as to safeguard the interest of investors, it has been decided to make the invocation and sale as a combined automated process," Sebi said in a circular. For client-initiated sales, when clients sell pledged securities, depositories will now allow a single instruction to release the pledge and block the securities for early pay-in directly from the client's demat account. This process will eliminate the need for manual instructions or the use of Power of Attorney (POA). Live Events In the case of broker-initiated invocation, when brokers invoke securities due to non-payment, the shares, excluding unlisted mutual funds, will be automatically blocked for early pay-in from the client's demat account. Additionally, a transaction trail will be maintained in the broker's pledge accounts to ensure transparency and auditability. For unlisted mutual funds, Sebi has introduced a new 'invocation cum redemption' mechanism. This feature helps brokers to invoke and redeem mutual fund units automatically from their pledge accounts, simplifying operations and reducing delays. In cases involving frozen or blocked client accounts, the invoked securities will be transferred to the broker's demat account. To prevent unnecessary accumulation, brokers are required to sell these securities on the same day under their proprietary code. This framework will come into effect on September 5, while depositories are required to issue detailed operational guidelines by July 1. Earlier, Sebi had mandated brokers to accept securities as collateral only through margin pledges in the depository system.
