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Time of India
2 days ago
- Business
- Time of India
Pump & dump: Sebi bans actor Warsi, wife
Photo/Agencies MUMBAI: Sebi on Friday banned 59 entities, including actor Arshad Warsi , his wife Maria Goretti, from the market for up to 5 years. The move is related to misleading videos on YouTube channels - like Moneywise, The Advisor and Profit Yatra - luring investors to buy TV channel Sadhna Broadcast's shares. The markets regulator fined the couple Rs 10 lakh, and they will have to disgorge illegal gains worth Rs 92 lakh from the stock price manipulation. Warsi and his wife Goretti played a role in promoting the stock of Sadhna (now Crystal Business System) through videos on YouTube, which were uploaded by one of the masterminds of the scheme. In its 109-page order, Sebi whole-time member Ashwani Bhatia stated that the way the whole incident played out painted "a disturbing picture regarding the increasing use of social media platforms, which have immense reach and influence in the digital age, as tools for market manipulation". Sebi ordered disgorgement of illegal gains totalling about Rs 58 crore and imposed fines of up to Rs 5 crore on the entities. The overall conduct of the people involved in the scheme revealed a classic pump-and-dump scheme, the report said. "The price was systematically pushed upward through collusive trading, followed by aggressive promotional activity to draw in retail investors, and finally, a coordinated sell-off by the promoters. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo Retail investors, misled by this staged market activity, were left holding the shares at distorted valuations once the manipulators, including the promoters, exited," the report said. Sebi found that three individuals, Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra, were the masterminds. Subhash Aggarwal, a director with Skyline Financial Services, the registrar & transfer agent of Sadhna Broadcast, was the middleman. These individuals "were the central characters who planned and executed the manipulative scheme", Sebi said. Modus Operandi: First, the entities executed trades among themselves to steadily inflate the price of the scrip and create a false appearance of market interest. Second, misleading promotional videos were disseminated across YouTube channels operated by Manish Mishra. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India.com
3 days ago
- Business
- India.com
Bad news for Arshad Warsi, his wife as they get banned from..., fined Rs 5 lakh each for...
Bollywood actor Arshad Warsi is a well-known, versatile actor who started his journey as a dance choreographer and later found a chance in acting, which became a huge opportunity for him. Over the years, Arshad has impressed audiences with his performances in both comedy and serious roles, earning a strong fan following. However, this time Arshad has landed into serious trouble that is associated with the share market. Arshad Warsi and Wife Banned By… In a major action, SEBI (Securities and Exchange Board of India) has banned Arshad, his wife Maria Goretti, and 57 other people from taking part in the stock market. This ban is for one to five years, depending on their role in the case. The issue is linked to a scam involving Sadhna Broadcast Ltd. As per reports, SEBI found that some YouTube channels had posted fake videos to trick people into buying shares of the company. The videos claimed that big companies like the Adani Group were planning to buy Sadhna Broadcast or invest huge money in it. These false claims made the share prices go up quickly. Once the prices were high, the people involved sold their shares to make big profits. This type of fraud is called a 'pump-and-dump' scheme. Arshad and His Wife to Pay… According to Hindustan Times, on May 29, SEBI published a long 109-page report that shed light on the entire scheme. The time frame for SEBI's probe is March 8, 2022, to November 30, 2022. As per their findings, shares of Sadhna Broadcast were manipulated during this time. Arshad Warsi and his wife were named as volume creators, which means that they bought and sold shares when the false videos were posted. Arshad reportedly made around Rs 29.43 lakh, while Maria made about Rs 37.56 lakh. SEBI fined them Rs 5 lakh each and has asked them to return the money they earned illegally, with 12% interest per year. In total, 59 people were found guilty in this scam, including the promoters of Sadhna Broadcast, as they made illegal profits of over Rs 58 crore. SEBI has given out penalties between Rs 5 lakh and Rs 5 crore, depending on how much each person has earned from this scam.
Time of India
3 days ago
- Business
- Time of India
Sadhna Broadcast case: Sebi bans Arshad Warsi, wife Maria Goretti from the securities market; actor fined Rs 5 lakh
Sadhna Broadcast case: The Securities and Exchange Board of India (Sebi) has barred actor Arshad Warsi, his wife Maria Goretti, and 57 others from being involved in securities markets for periods ranging from one to five years. The action comes following the actor and his wife's collaboration on videos posted on YouTube that prompted viewers to purchase shares of Sadhna Broadcast, the central agency said. Arshad Warsi banned from securities market, fined Rs 5 lakh Actor Arshad Warsi, best known for his work in films such as Munnabhai MBBS and Jolly LLB, has landed in trouble because of his role in the Sadhna Broadcast case. On May 29, Sebi imposed monetary penalties of Rs 5 lakh each on Warsi and his wife, Goretti. Moreover, they have been banned from the market for a year. Further, the regulatory body has imposed financial penalties ranging from Rs 5 lakh to Rs 5 crore on 57 other parties. This includes the promoters of Sadhna Broadcast, which is now known as Crystal Business System Ltd. Sebi further asked all 59 entities to return collective illegal profits of Rs 58.01 crore. An additional annual interest of 12 per cent will also be levied. This has to be paid jointly till the entire amount is sorted. As per Sebi's findings, Arshad Warsi earned profits of Rs 41.70 lakh, while Maria Goretti made Rs 50.35 lakh from their actions. About the Sadhna Broadcast case In its detailed report, Sebi noted that the scheme was carried out in two stages. In the first one, promoter-associated entities conducted trades internally in a bid to increase the scrip price and create fake market activity. The transactions had an impact on pricing largely due to limited market liquidity. This gave the concerned parties an opportunity to boost the share value while utilising negligible trading resources. After this, promotional content was broadcast on various YouTube channels. These videos projected SBL as a top-notch investment option and went hand-in-hand with the orchestrated market activities Arshad Warsi and Maria Goretti married in 1996. They have two children. Goretti was a noted VJ. She also made a guest appearance in Rajat Kapoor's Raghu Romeo. Arshad Warsi, meanwhile, is gearing up for the release of Jolly LLB 3 and Welcome to the Jungle.
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Business Standard
3 days ago
- Business
- Business Standard
Why has Sebi barred Arshad Warsi from the securities market for a year?
The Securities and Exchange Board of India (Sebi) on Thursday barred Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 other entities from the securities market for periods ranging from one to five years. The crackdown follows an investigation into misleading YouTube videos that recommended investing in shares of Sadhna Broadcast Ltd (now Crystal Business System Ltd). 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.
Hindustan Times
3 days ago
- Business
- Hindustan Times
Why actor Arshad Warsi, his wife have been barred from trading in securities market
The Securities and Exchange Board of India (SEBI) has banned Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 others from trading in the securities markets for up to five years, reported news agency PTI. The ban comes after an investigation revealed their involvement in a scheme to manipulate the stock prices of Sadhna Broadcast, now known as Crystal Business System Ltd. Actor Arshad Warsi and his wife were fined ₹5 lakh each and banned from the securities market for one year. SEBI said Arshad made a profit of ₹41.70 lakh and Maria earned ₹50.35 lakh through these trades. The market regulator also fined the other 57 entities between ₹5 lakh and ₹5 crore each. The group has been asked to return ₹58.01 crore in illegal profits, along with 12% interest per year from the end of the investigation period until full payment is made. According to SEBI's final order issued on Thursday, misleading videos were posted on YouTube channels urging people to invest in Sadhna Broadcast. These videos made the stock look promising, creating artificial demand and pushing its price. SEBI described the scheme as a typical "pump-and-dump." In this strategy, prices are pushed up using false information. Once the prices rise, the manipulators sell their shares for a profit, leaving regular investors with losses. 'The price was systematically pushed upward through collusive trading, followed by aggressive promotional activity to draw in retail investors, and finally, a coordinated sell-off by the promoters,' said Ashwani Bhatia, SEBI's whole-time member, reported PTI. The investigation identified Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra as the main planners of the operation. SEBI said that Subhash Aggarwal, a director of Sadhna Broadcast's registrar and transfer agent (RTA), acted as the link between Mishra and the company promoters. Manish Mishra also ran YouTube channels such as Moneywise, The Advisor, and Profit Yatra. These were used to spread promotional videos in the second phase of the scheme. SEBI also found that Peeyush Agarwal, a dealer at Choice, and Lokesh Shah, who ran a Delhi-based brokerage franchise, played key roles in helping carry out the plan. Jatin Shah was also named for executing the scheme. Some entities did not trade using their own accounts but helped pass on information or place trades to aid the fraud. Connected entities first traded among themselves to slowly raise the stock price. Because the stock had low trading volumes, even small trades made a big difference in price. In the second phase, the misleading videos were released to lure investors. The scam came to light after the regulating body received complaints between July and September 2022 about unusual stock price movements and misleading online content promoting the company. Sebi then launched a detailed investigation covering the period from March 8, 2022, to November 30, 2022. An earlier interim order was issued in March 2023 against 31 of the entities. One promoter company, Varun Media Pvt Ltd, has not been fined due to ongoing insolvency proceedings, but it is still required to return its share of the illegal profits. Sebi said further decisions in this case will be made separately. The 109-page Sebi order concluded that all 59 entities broke rules meant to stop fraud and unfair practices in the market. (With PTI inputs)
