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In a significant crackdown on stock market malpractice, the Securities and Exchange Board of India (SEBI) has barred Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 others from trading in the securities market for periods ranging from one to five years. The couple has also been fined ₹5 lakh each for their involvement in a stock manipulation case involving Sadhna Broadcast, now known as Crystal Business System Ltd.
According to SEBI’s detailed 109-page order, the banned individuals were part of a coordinated “pump-and-dump” scheme—a fraudulent strategy where a stock’s price is artificially inflated through misleading promotional activities and then sold off for profit, leaving ordinary investors with losses.
SEBI’s whole-time member Ashwani Bhatia stated that the manipulation involved collusive trading to push the stock price upward, followed by an aggressive online campaign to attract retail investors. The final step was a coordinated sell-off by insiders and connected parties.
The market regulator identified Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra as the key masterminds behind the operation. Manish Mishra, who operated multiple YouTube channels including Moneywise, The Advisor, and Profit Yatra, used these platforms to release deceptive videos promoting the stock during the second phase of the scheme.
Subhash Aggarwal, a director at the company’s registrar and transfer agent (RTA), allegedly acted as the bridge between Mishra and the company’s promoters. Other notable names in the scheme include Peeyush Agarwal, a dealer at Choice, and Lokesh Shah, who operated a Delhi-based brokerage franchise.
SEBI’s investigation found that some entities did not directly trade but facilitated the scam by passing on insider information or placing trades on behalf of others. The fraudulent activity took place between March 8, 2022, and November 30, 2022, and came to light after SEBI received complaints about suspicious stock movements and misleading content between July and September 2022.
SEBI had earlier issued an interim order in March 2023 against 31 of the entities involved. In its latest order, it clarified that Varun Media Pvt Ltd, one of the promoter companies, has not been fined due to ongoing insolvency proceedings. However, it will be required to return its share of illegal profits, and further decisions regarding its role will be made separately.
All 59 entities named in SEBI’s final order have been found in violation of regulations designed to prevent fraud and ensure fair practices in the securities market.
This case has drawn attention to the growing misuse of online platforms, including YouTube, in promoting fraudulent investment schemes, and serves as a warning to investors to verify information before making trading decisions.
Sources By Agencies
