In a sweeping enforcement move, the Securities and Exchange Board of India (SEBI) has barred 59 individuals and entities — including Bollywood actor Arshad Warsi and his wife, Maria Goretti — from participating in the securities market for up to five years. The action stems from a detailed investigation into a pump-and-dump scheme involving shares of Sadhna Broadcast Ltd.
The Case Unfolded
SEBI’s inquiry revealed a coordinated effort to artificially boost the stock price of Sadhna Broadcast using misleading promotional videos circulated on YouTube. These videos made exaggerated claims — such as the company securing major film production deals or being acquired by a large corporate group — to lure unsuspecting retail investors.
Once the price spiked and trading volumes surged, those involved allegedly offloaded their shares at inflated rates, profiting at the expense of thousands of small investors.
Role of Arshad Warsi and Others
Among the individuals profiting from the scheme were Arshad Warsi and Maria Goretti, who reportedly earned ₹29.4 lakh and ₹37.5 lakh respectively through timely trades. SEBI’s report, however, did not conclusively link them to the creation of the misleading videos but flagged their trading patterns as suspicious.
The number of small shareholders in the company exploded from just over 2,000 to more than 55,000 during the alleged manipulation period.
SEBI’s Orders and Penalties
In addition to imposing trading bans for durations ranging from one to five years, SEBI has frozen ₹41.85 crore in alleged unlawful gains. The regulator also directed the accused parties to refrain from buying, selling, or dealing in securities, either directly or indirectly.
Response and Relief
Following the order, Warsi took to social media to assert that he and his wife had no understanding of stock trading and had acted based on advice, resulting in financial loss rather than gain. Subsequently, the Securities Appellate Tribunal (SAT) granted interim relief by limiting the trading restrictions to shares of Sadhna Broadcast and reducing the deposit amount to be held during the appeal.
Bigger Picture
This high-profile crackdown has sparked renewed attention on the misuse of social media for stock manipulation. SEBI’s action signals a growing commitment to clamping down on fraudulent practices that exploit uninformed investors.
As the digital era fuels new ways to influence markets, this case could serve as a landmark precedent for regulating deceptive financial content online.
