SEBI Bans Actor Arshad Warsi and Wife for One Year Over Involvement in Pump-and-Dump Scheme Using Misleading YouTube Promotions
Published on: May 31, 2025
By: [BTNI]
Location: Mumbai, India
The Securities and Exchange Board of India (SEBI) has imposed a one-year ban on Bollywood actor Arshad Warsi and his wife, Maria Goretti, from participating in the securities market due to their involvement in a stock manipulation scheme. The regulatory action follows an investigation into misleading YouTube videos that promoted shares of Sadhna Broadcast Ltd (now Crystal Business System Ltd), luring unsuspecting investors into buying at inflated prices.
According to SEBI’s 109-page final order issued on Thursday, Warsi and Goretti, along with 57 other entities, were found to have participated in a “pump-and-dump” scheme. The scheme involved coordinated trading and false promotions through YouTube channels such as The Advisor, Moneywise, and Profit Yatra, operated by Manish Mishra, to artificially inflate Sadhna Broadcast’s share price. These videos falsely claimed the company was set to be acquired by the Adani Group, had secured a 5G license, or signed a Rs 1,100 crore deal with a U.S. firm, leading to a surge in retail investor interest.
SEBI’s investigation, covering trading activity from March to November 2022, revealed that Warsi earned profits of Rs 41.70 lakh, while Goretti gained Rs 50.35 lakh by trading shares at inflated prices. The couple purchased shares from connected entities, including Jatin Shah and Angad Rathod, and sold them shortly after the price surged due to the misleading promotions. SEBI identified Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra as the masterminds, with Subhash Aggarwal, a director at Sadhna’s registrar and transfer agent, acting as a liaison.
The regulator has imposed a Rs 5 lakh fine each on Warsi and Goretti and ordered the 59 entities to collectively disgorge Rs 58.01 crore in illegal gains, along with 12% annual interest. Seven individuals face a five-year market ban, while the remaining 54, including Warsi and Goretti, are barred for one year. SEBI also noted that the scheme significantly increased the number of small shareholders, from 2,167 to 55,343, who bought shares at manipulated prices.
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Warsi, known for roles in films like Munna Bhai MBBS and Golmaal, had previously claimed in 2023, when SEBI issued an interim ban, that he and his wife had “zero knowledge about stocks” and lost money after investing in Sadhna Broadcast based on advice. However, SEBI’s findings, including WhatsApp chats with Mishra, suggest their active involvement in the scheme.
This crackdown underscores SEBI’s commitment to curbing financial misconduct and protecting retail investors from manipulative practices in the securities market. The case serves as a warning against the misuse of social media platforms for stock manipulation.
