SEBI Bans Arshad Warsi, Wife for One Year Over Sadhna Broadcast Pump-and-Dump Scam
Trending Today SEBI Bans Arshad Warsi, Wife for One Year Over Sadhna Broadcast Pump-and-Dump Scam Supreme Court Upholds ₹1 Lakh Fine on Odisha PSC Over Judicial Exam Evaluation Error NPAC to Host Conference on Insolvency and Bankruptcy Code: Reflecting on a Decade and Planning the Future Delhi High Court Orders Mohak Mangal to Remove Defamatory Content Targeting ANI Supreme Court Issues Notice on Byju’s Insolvency Case Appeals by BCCI and Riju Raveendran Arunachal Pradesh: Exploring Its Rich Tribal Heritage, Natural Beauty, and Development Challenges JOB OPPORTUNITY AT DSA LEGAL LEGAL JOB OPPORTUNITY AT TRENTAR PRIVATE LIMITED JOB OPPORTUNITY AT UGRO CAPITAL LTD JOB OPPORTUNITY AT LIS PARTNERS SEBI Bans Arshad Warsi, Wife for One Year Over Sadhna Broadcast Pump-and-Dump Scam PRABHAT KUMAR BILTORIA 01 June 2025 The Securities and Exchange Board of India (SEBI) bans Bollywood actor Arshad Warsi, his wife Maria Goretti, and others from the securities market for their role in a pump-and-dump scheme involving Sadhna Broadcast Limited. Discover the full details of SEBI’s findings, penalties, and the fraudulent trading practices involved. SEBI Bans Arshad Warsi and Others in Major Pump-and-Dump Scam On May 30, 2025, the Securities and Exchange Board of India (SEBI) issued a major order prohibiting actor Arshad Warsi, his wife Maria Goretti, and 57 others from participating in the securities market. The ban stems from their alleged involvement in manipulating the stock of Sadhna Broadcast Limited (SBL) through a coordinated pump-and-dump scheme. SEBI’s Findings on Market Manipulation According to the order issued by SEBI Whole Time Member Ashwani Bhatia, Arshad Warsi, his brother Iqbal Hussain Warsi, and Maria Goretti Warsi traded in SBL shares under the explicit direction of scheme mastermind Manish Mishra. WhatsApp chat records from July 13, 2022, revealed coordinated trades from the accounts of the three individuals — 3,29,050 shares by Arshad Warsi, 3,29,755 shares by Maria Goretti, and 82,625 shares by Iqbal Warsi — all at ₹12.08 per share, acting on Mishra’s instructions. The Role of Misleading YouTube Promotions SEBI’s investigation uncovered that the manipulation scheme operated in two stages. First, related parties carried out pre-arranged trades to artificially inflate the stock’s price and volume. Then, fake promotional videos were uploaded on YouTube claiming false acquisitions by the Adani Group, ownership of 5G licenses, and unrealistic share price projections ranging from ₹76 to ₹340. These videos, posted via five YouTube channels managed by Manish Mishra, were heavily promoted using Google Ads to attract public investors. Interim Orders and Scope of SEBI’s Investigation In March 2023, SEBI issued an interim order restricting the Warsis and others from trading in the securities market. The Securities Appellate Tribunal (SAT) later limited the ban to SBL shares alone. The investigation covered the period from March 8 to November 30, 2022, triggered by investor complaints received between July and September 2022. Notably, during this timeframe, SBL’s public shareholding skyrocketed from 885 to 72,509, while promoter holdings fell from 40.95% to 25.58%. Regulatory Violations and Financial Penalties SEBI concluded that the Warsis’ trading activity violated multiple provisions of the SEBI Act, 1992 and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003. Arshad Warsi’s unlawful profits totaled ₹41.70 lakh, Maria Goretti’s reached ₹50.35 lakh, and Iqbal Warsi earned ₹12.61 lakh. Mishra was held jointly liable, and Arshad Warsi was additionally accountable for the gains in his wife’s account. Disgorgement and Further Actions SEBI ordered the Warsis to repay the illicit earnings with 12% annual interest from November 30, 2022, and imposed a ₹5 lakh penalty on each individual. These amounts are to be deposited into the Investor Protection and Education Fund within 45 days. Conclusion: A Cautionary Tale for Investors and Market Participants The SEBI crackdown on Arshad Warsi, Maria Goretti, and others involved in the Sadhna Broadcast pump-and-dump scheme serves as a powerful reminder of the consequences of market manipulation. This case highlights the importance of regulatory oversight and transparency in protecting retail investors from fraudulent schemes fueled by misinformation and digital media. As financial markets become increasingly influenced by online content and social media, investors must remain vigilant and rely on verified sources before making investment decisions. SEBI’s decisive action reaffirms its commitment to maintaining market integrity and punishing those who misuse their influence for personal gain. Leave a Reply Cancel Reply Logged in as Sada Law. Edit your profile. Log out? 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