Arshad Warsi & wife Maria land in trouble, SEBI bars and imposes fine of Rs..., here's why

Markets regulator the Securities and Exchange Board of India (SEBI) on Thursday barred Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 others from the securities markets for periods ranging from 1-5 years.

The regulator imposed a fine of Rs 5 lakh each on Warsi and his wife, Maria. The decision came in a case related to misleading videos on YouTube channels recommending investors to buy shares of Sadhana Broadcast. SEBI found that Arshad Warsi had made a profit of Rs 41.70 lakh and his wife earned a profit of Rs 50.35 lakh.

“It is noted that Arshad Hussain Warsi in his statement recorded before SEBI on June 27, 2023, stated that apart from placing trades in his own account, he was also trading from the accounts of his wife (Noticee 61) and brother (Noticee 62). It is further noted from the submissions of Noticee 60 that Aahuti Mistry acted as the manager of Arshad Warsi,” according to the SEBI order.

SEBI also levied penalties in the range of Rs 5 lakh to Rs 5 crore on 57 other entities, including promoters of Sadhana Broadcast (now Crystal Business System Ltd). Apart from the debarment, SEBI also directed these entities to disgorge total unlawful gains of Rs 58.01 crore along with 12% interest per annum from the end of the investigation period till the date of actual payment.

The capital markets regulator said the masterminds behind this whole operation were Gaurav Gupta, Rakesh Kumar Gupta and Manish Mishra. Subhash Aggarwal, who also happened to be a director of the RTA of Sadhana Broadcast Ltd, acted as the go-between Manish Mishra and the promoters, the order stated.SEBI received complaints, alleging that there was price manipulation and subsequent offloading of shares in the scrip of SBL.

It was also stated in the complaints that YouTube videos were being uploaded with false content to lure investors and a paid marketing campaign worth Crores was undertaken to make the videos reach a wider audience. The complainant also provided links to YouTube videos, names of YouTube channels and dates when the videos were uploaded.

SEBI examined the complaints and prima facie found that net sellers in the shares of SBL were connected to the creator of YouTube channels, wherein videos with false content and unrealistic target prices for the scrip were uploaded with the intention to influence and induce public investors to invest in the scrip."Search and seizure operations were conducted at the premises of 15 Noticees wherein various documentary and electronic evidences were gathered and statements of various Noticee were recorded on oath," according to the markets regulator.

(Except for the headline, the story has not been edited by DNA staff but is published from IANS)