Arshad Warsi, Wife Maria Goretti banned from stock market: SEBI crackdown on Sadhna Broadcast scam

Actor Arshad Warsi and his wife Maria Goretti have found themselves at the centre of a major financial controversy. The Securities and Exchange Board of India (SEBI) has barred the couple, along with 57 others, from participating in the Indian stock market for up to five years. This move comes as part of SEBI’s crackdown on a massive stock manipulation case involving a little-known company, Sadhna Broadcast Ltd, recently renamed Crystal Business System.

The case is a classic example of a “pump-and-dump” scheme, where a stock’s price is artificially inflated through false promotions and internal trading. Once prices rise, shares are sold to unsuspecting retail investors at inflated values, leading to significant losses for the public. According to SEBI, Sadhna Broadcast’s promoters coordinated trades amongst themselves, manipulating the share price despite trading in low volumes.

The second phase of this operation involved misleading YouTube videos that exaggerated the company’s prospects. Channels like Moneywise, The Advisor, and Profit Yatra allegedly run by Manish Mishra falsely claimed that SBL had signed deals with the Adani Group or bagged a Rs 1100 crore contract from an American company. These videos were timed strategically to align with the manipulated trading, thus luring retail investors.

Between March and December 2022, the promoter’s shareholding fell from 40.95% to 25.58%, while public shareholding skyrocketed from 59.05% to 74.52%. The number of retail investors surged from just 885 to over 72,000 during this period.

Arshad Warsi bought 1.87 lakh shares on July 13, 2022, from Jatin Shah, a key player in the network, while Maria Goretti purchased 2.65 lakh shares. Though the actor claimed innocence, stating he acted on a friend’s tip, SEBI dismissed this explanation, citing incriminating WhatsApp chats. Arshad reportedly earned Rs 41.7 lakh and Maria made Rs. 50.35 lakh in profits from these trades.

SEBI has directed all 59 implicated entities to repay illegal gains worth Rs. 58.01 crore, along with 12% interest annually until full repayment.