Explained: The reason behind Sebi's one-year ban on Arshad Warsi and his wife, Maria Goretti


Bollywood actor Arshad Warsi and his wife Maria Goretti have been banned by the Securities and Exchange Board of India (SEBI) from the securities market for one year. This action is part of SEBI’s crackdown on a scheme that manipulated the stock price of Sadhna Broadcast Limited (now Crystal Business System Ltd).

SEBI found that false and misleading YouTube videos, aired on popular channels like “The Advisor” and “Moneywise,” falsely claimed that the company had a 5G license, was being taken over by the Adani Group, and had signed a massive Rs 1,100 crore deal with a US firm. These videos, promoted via paid ads, drove retail investors to buy the stock, causing its price to rise artificially.

Arshad Warsi and Maria Goretti purchased shares from other connected individuals just before the stock price surged, then sold them at inflated prices shortly after. SEBI concluded that this coordinated trading and the misleading videos were designed to manipulate the stock price and profit at the expense of unsuspecting investors.

Following a thorough investigation involving electronic evidence, bank records, and trading data, SEBI banned Arshad, Maria, and 59 others involved from dealing in securities for one year, barring them from accessing the securities market.

This case highlights the risks of fake social media promotions and stock manipulation, and SEBI’s commitment to protecting retail investors.


 

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