Arshad Warsi Among 59 Banned by SEBI Over Stock Market Misconduct

New Delhi : In a major crackdown on market manipulation using social media, the Securities and Exchange Board of India (Sebi) has barred Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 other individuals and entities from accessing the securities markets for a period ranging from one to five years. The action stems from their involvement in promoting misleading stock recommendations through YouTube videos related to Sadhna Broadcast Ltd, now known as Crystal Business System Ltd.

The Sebi order, issued on Thursday, found that the accused were part of a coordinated pump-and-dump scheme that used deceptive videos to lure unsuspecting retail investors. The scheme involved recommending the purchase of shares of Sadhna Broadcast through multiple YouTube channels, which falsely claimed the stock was poised for a massive rally based on fabricated information.

According to Sebi, Arshad Warsi made a profit of ₹41.70 lakh and Maria Goretti earned ₹50.35 lakh by offloading their holdings during the period of manipulation. The market regulator imposed a monetary penalty of ₹5 lakh each on the couple and barred them from trading in the securities market for one year.

The investigation revealed a complex web of actors, including social media influencers, stock market operators, and company promoters. A total of 59 entities have been found guilty of unlawful gains amounting to ₹58.01 crore. Sebi has ordered them to jointly and severally disgorge the entire sum along with an annual interest of 12% from the end of the investigation period until the date of actual payment.

Furthermore, Sebi has levied financial penalties ranging between ₹5 lakh and ₹5 crore on the remaining 57 entities, depending on their level of involvement and profits gained. The promoters of Sadhna Broadcast were also found to be directly complicit in the fraudulent activity.

Sebi emphasized that such coordinated misinformation campaigns pose a serious threat to the integrity of the capital markets and retail investor interests. The regulator reiterated its zero-tolerance policy for stock price manipulation and use of digital platforms for misleading financial advice.