Published: May 30, 2025 | New Delhi

The Securities and Exchange Board of India (SEBI) has cracked down on actor Arshad Warsi, his wife Maria Goretti, and 57 other individuals for their roles in manipulating the stock price of Sadhna Broadcast Ltd, now known as Crystal Business System Ltd. SEBI has imposed market bans ranging from one to five years, along with significant monetary penalties.

📉 Why SEBI Took Action

According to SEBI’s 109-page order, the accused individuals were involved in an orchestrated pump-and-dump scheme using misleading YouTube videos. These videos, published on channels like Moneywise, The Advisor, and Profit Yatra, promoted Sadhna Broadcast shares with false narratives, prompting retail investors to buy the stock.

The fraudulent scheme was executed in two coordinated phases:

1. Price Rigging: Promoter-linked and connected entities traded among themselves to artificially inflate share prices and create a misleading image of market demand.

2. Public Manipulation: Once the price was inflated, deceptive videos were circulated online, encouraging the general public to invest in the company, thereby driving up volumes and allowing insiders to book profits.

💰 Profits and Penalties

• Arshad Warsi allegedly earned ₹41.7 lakh, while Maria Goretti gained ₹50.35 lakh.

• SEBI has ordered both to pay a ₹5 lakh penalty each and barred them from the securities market for 1 year.

• The total illegal gains across all 59 individuals were estimated at ₹58.01 crore, which must now be repaid with 12% annual interest until full recovery.

🔍 Who Were the Main Culprits?

SEBI has identified the key masterminds behind the scheme:

• Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra were central to the conspiracy.

• Subhash Aggarwal, a director at Sadhna Broadcast’s RTA, acted as a middleman.

• Peeyush Agarwal and Lokesh Shah allowed their accounts to be used for illicit trading activities.

• Jatin Shah was a primary executor of the manipulation process.

Other participants were found to have either supported or benefited from the scheme without directly engaging in trading.

📺 Role of YouTube in the Fraud

SEBI emphasized that YouTube was used as a tool of mass deception. The coordinated release of positive videos about the company led to a surge in retail investor interest, allowing insiders to exit their positions at inflated prices.

📌 What This Means for Investors

This case highlights the growing trend of market manipulation via digital platforms. SEBI’s action serves as a strong warning to investors to remain cautious of investment advice circulated on social media, especially from unverified sources.

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