The Securities and Exchange Board of India (SEBI) has imposed a sweeping ban on Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 other individuals, restricting their participation in the securities market for durations ranging from one to five years. The ban comes after an investigation revealed their involvement in a pump-and-dump scheme involving the shares of Sadhna Broadcast, now rebranded as Crystal Business System Ltd.
Celebrities, Finfluencers, and Fake Hype
Warsi and Goretti were fined ₹5 lakh each and are prohibited from trading for one year. According to SEBI’s detailed 109-page order, the couple collectively earned over ₹92 lakh in illicit gains—₹41.70 lakh by Warsi and ₹50.35 lakh by Goretti—through their participation in a larger manipulation network.
The crackdown affects 59 people in total, with penalties ranging from ₹5 lakh to ₹5 crore. Collectively, they are required to repay ₹58.01 crore in illegal profits along with 12% interest per annum until full restitution is made.
Inside the Scam: A Coordinated Price Rigging Operation
At the heart of the operation were Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra—considered the masterminds of the fraud. The scheme was orchestrated in two main stages:
- Artificial Price Inflation: The group first manipulated the thinly traded stock by executing trades among themselves. This created the illusion of high demand and an active market, driving up the stock price with relatively few transactions.
- YouTube Hype Machine: The second phase involved mass promotion of the stock via YouTube channels such as Moneywise, The Advisor, and Profit Yatra, all linked to Mishra. These videos painted a rosy picture of Sadhna Broadcast, luring unsuspecting retail investors into buying at inflated prices.
Web of Involvement
SEBI’s investigation revealed the complex network behind the fraud. Some individuals provided their trading accounts for manipulation, while others played more active roles:
- Peeyush Agarwal and Lokesh Shah facilitated stock manipulation.
- Jatin Shah assisted in operationalizing the plan.
- Subhash Aggarwal, a director at the company’s registrar and transfer agent, connected Mishra with company promoters.
Several others acted as intermediaries, spreading false information and enabling trades without using their own names, further masking the scheme’s depth.
A Stern Message
SEBI’s action sends a strong message to influencers and market participants attempting to manipulate public sentiment through digital platforms. As online investment content becomes more influential, the watchdog appears increasingly vigilant about misleading promotions and coordinated frauds.
This case underscores the risks retail investors face from seemingly trustworthy figures and content online—and serves as a warning to those misusing their influence for personal gain.
