SEBI bans actor Arshad Warsi and 58 others from markets for up to 5 yrs
SEBI Bans Actor Arshad Warsi, For Alleged Pump-and-Dump Activity In Stock Markets: Market regulator Sebi has barred Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 others from the securities market for one to five years. The ban is related to advising investors to buy shares of Sadhna Broadcast through misleading videos on YouTube channels.
Warsi and his wife were also fined Rs 5 lakh each
The regulator has imposed a fine of Rs 5 lakh each on Warsi and his wife Maria. According to the order passed by SEBI on Thursday, the market regulator has banned the couple from the securities market for one year. SEBI has also imposed fines ranging from Rs 5 lakh to Rs 5 crore on 57 other entities, including the promoters of Sadhna Broadcast (now Crystal Business System Ltd).
Illegal profit of ₹41.70 lakh to Arshad and ₹50.35 lakh to his wife
Apart from the ban, Sebi directed these 59 entities to jointly and severally refund the total illegal gains of Rs 58.01 crore along with 12 per cent annual interest from the end of the investigation period to the date of actual payment. According to Sebi, Arshad gained Rs 41.70 lakh, and his wife gained Rs 50.35 lakh.
SEBI gave this information about the mastermind of the case
In the final order, SEBI found that the masterminds behind the entire operation were Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra. The order said that Subhash Agarwal, Director, RTA, Sadhna Broadcast Limited (SBL), played the role of intermediary between Manish Mishra and the promoters. SEBI said that these were the key people who planned and executed the entire fraud. Apart from this, the regulator found that Piyush Agarwal and Lokesh Shah allowed their accounts to be used in the manipulative designs of Manish Mishra and the promoters of SBL. Similarly, Jatin Shah played a leading role in executing the scheme. At the same time, other entities facilitated the manipulative designs and joined in them to make quick money, the order said.
SEBI gave this information in a 109-page order
In a 109-page order, Sebi said the noticees (entities) have acted as information carriers or assisted in manipulative trades. However, they have not traded in shares from their accounts. The order said that in the second phase of the scheme, misleading and promotional videos were broadcast on YouTube channels such as Moneywise, The Advisor, and Profit Yatra, which are operated by Manish Mishra. He said that these videos presented SBL as a promising investment opportunity and were timed to coincide with market movements.
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