Sebi Bans Arshad Warsi in Sadhna Broadcast YouTube Pump-and-Dump Scam

Sebi Bans Arshad Warsi in Sadhna Broadcast YouTube Pump-and-Dump Scam

New Delhi, May 30, 2025 — In a major crackdown on market manipulation, 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 participating in the securities market for 1 to 5 years. The case pertains to a classic pump-and-dump stock scam involving Sadhna Broadcast Ltd, now known as Crystal Business System Ltd, where misleading YouTube videos were used to lure retail investors into buying inflated shares.

The Sebi order, passed on May 30, also imposes monetary penalties ranging from ₹5 lakh to ₹5 crore on the accused. In total, the 59 parties have been directed to disgorge illegal gains amounting to ₹58.01 crore, along with 12% annual interest from the end of the investigation period until full payment.

Bollywood Faces Heat in YouTube Stock Scam

Among the most prominent names in the list are Arshad Warsi and his wife Maria Goretti, who were found to have earned illegal profits of ₹41.7 lakh and ₹50.35 lakh respectively. Sebi has barred both from the securities market for one year and imposed a fine of ₹5 lakh each.

The duo’s involvement was linked to the dissemination of misleading stock tips via YouTube, which promoted Sadhna Broadcast shares as a lucrative investment opportunity.

Two-Phase Manipulative Scheme: From Fake Trading to YouTube Hype

Sebi’s 109-page final order details a two-phase market manipulation scheme orchestrated by a network of traders, promoters, influencers, and intermediaries.

Phase 1: Artificial Price Inflation

Promoter-linked and connected entities conducted collusive trades among themselves, inflating the price of Sadhna Broadcast shares. Despite low trading volumes, these trades significantly pushed up the stock price due to the stock’s low liquidity.

Phase 2: YouTube-Based Promotion

In the second phase, promotional YouTube videos were published across channels like Moneywise, The Advisor, and Profit Yatra—all controlled by key accused Manish Mishra. These videos presented Sadhna Broadcast as a high-potential investment, urging viewers to buy quickly before the price surged further.

Sebi noted that this was timed to coincide with artificial market activity, giving retail investors a false sense of urgency and opportunity.

The Masterminds and Their Network

The scam was masterminded by Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra, with critical support from Subhash Aggarwal, a director associated with the RTA of Sadhna Broadcast.

Other key figures included:

• Peeyush Agarwal (dealer at Choice) and
• Lokesh Shah (Delhi-based franchise owner of a brokerage firm),
  who facilitated trades for the manipulators.

Jatin Shah played a pivotal role in operationalizing the scheme, while other associates acted as information carriers, fake traders, or beneficiaries of the artificial rally.

“The entire conduct reflects a well-orchestrated pump-and-dump scheme, designed to deceive unsuspecting retail investors,” Sebi’s Whole-Time Member Ashwani Bhatia stated in the order.

Consequences and Penalties

Sebi has imposed a range of penalties and restrictions on the 59 entities involved:

• ₹5 lakh to ₹5 crore fines based on the role and gains of each party
• Market bans ranging from 1 to 5 years
• Disgorgement of ₹58.01 crore in illegal profits, with interest
• Criminal proceedings may follow depending on further regulatory action

No monetary fine was imposed on Varun Media Pvt Ltd, a promoter entity, as it is currently under insolvency proceedings. However, the company is still liable for disgorgement of illicit gains.

How It Started: Complaints Triggered Sebi Probe

The case dates back to July–September 2022, when Sebi received complaints alleging share price manipulation and offloading of Sadhna Broadcast stocks after misleading promotional videos appeared on YouTube. Sebi subsequently conducted a full-fledged probe covering the period from March 8, 2022 to November 30, 2022.

An interim order in March 2023 had already restrained 31 entities, including SBL promoters, from trading pending the final investigation.

Conclusion: YouTube and Market Manipulation – A New Challenge for Regulators

This case underscores the growing threat of digital manipulation in financial markets, particularly through social media platforms like YouTube. Sebi’s action sends a strong message that influencer-backed financial fraud will not go unchecked.

As markets go digital, so do scams—making regulatory vigilance, investor education, and digital literacy more important than ever.