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Bollywood Actor Arshad Warsi barred from markets in SEBI crackdown on YouTube-fueled stock manipulation
Market regulator SEBI bars actor Arshad Warsi and associates for one year over a YouTube-driven stock manipulation scheme involving misleading videos and pump-and-dump trades.
The regulator also levied monetary penalties of ₹500,000 each on the actor, his wife Maria Goretti, and his brother, Anwar Warsi. SEBI further ordered the trio to collectively disgorge ₹1.05 crore in alleged illicit gains.
Capital markets regulator has barred actor Arshad Warsi, his wife, and his brother from trading in securities for one year, alleging their involvement in a pump-and-dump scheme that artificially inflated the stock price of a small-cap media company before shares were offloaded to unsuspecting investors.
The Securities and Exchange Board of India (SEBI) issued a final order in the matter concerning Sadhna Broadcast Ltd., now renamed Crystal Business System Ltd. The agency accused the Warsis of colluding with a network of individuals who orchestrated a coordinated campaign to mislead investors through manipulated online content and structured trading activity.
The regulator also levied monetary penalties of ₹500,000 each on the actor, his wife Maria Goretti, and his brother, Anwar Warsi. SEBI further ordered the trio to collectively disgorge ₹1.05 crore in alleged illicit gains.
According to the order, the scheme involved spreading false and misleading information about Sadhna Broadcast through a series of promotional YouTube videos and paid marketing efforts, designed to create a “false positive narrative” around the stock. These efforts were spearheaded by an individual identified as Manish Mishra, who, SEBI alleged, maintained frequent communication with Arshad Warsi and orchestrated trading patterns to inflate the stock's price.
Chats recovered by SEBI show that Mishra proposed transferring ₹25 lakh each into the bank accounts of the actor and his relatives. Investigators also found that Arshad Warsi admitted to executing trades not only in his own account but also in those of his wife and brother.
In total, SEBI has barred 54 individuals from participating in the securities market for one year and another seven for a period of five years, including Mishra and several alleged co-conspirators. The investigation covered the period between March 8 and November 30, 2022, following a complaint that accused YouTube influencers of promoting the stock with false claims and paid outreach campaigns.
SEBI named five YouTube channels — The Advisor, Midcap Calls, Profit Yatra, Moneywise, and India Bullish — as central to the scheme, citing that they misrepresented Sadhna Broadcast’s financial health and prospects to retail investors. Trading data analyzed during the probe indicated that 45 percent of the total trading volume in SBL’s shares during the period was attributable to structured, coordinated trades among connected entities.
The investigation also revealed that company insiders, including its promoters, were aware of the scheme and actively participated. SEBI uncovered WhatsApp messages linking Mishra to Subhash Agarwal and other promoters, who allegedly sold shares immediately after the videos went live.
Among the biggest financial beneficiaries of the scheme, SEBI said, were Gaurav Gupta, who netted ₹18.33 crore, and Sadhna Bio Oils Pvt. Ltd, which earned ₹9.41 crore. The regulator has ordered the disgorgement of these gains and imposed penalties of ₹5 crore on Mishra and ₹2 crore each on Gupta and several other named individuals. A penalty of ₹1 crore was imposed on Jatin Manubhai Shah.
One senior Indian Police Service (IPS) officer was also found to have participated in the manipulation but settled the case through SEBI’s consent mechanism, the regulator said.
The Warsis, in their defense, claimed to be novices in equity markets and said they were misled by Mishra. SEBI, however, rejected their explanation, stating that the evidence suggested active participation and awareness of the trading strategy.
The order marks a significant escalation in SEBI’s efforts to clamp down on stock manipulation in an increasingly influencer-driven trading landscape.
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