Bollywood Actor Arshad Warsi faces SEBI ban in Stock Market Scam

The Securities and Exchange Board of India (SEBI) has imposed severe measures against Bollywood actor Arshad Warsi, his spouse Maria Goretti, and 57 other individuals in connection with deceptive YouTube videos.

SEBI has acted against a YouTube video recommending the purchase of Sadhana Broadcast shares. The regulator has prohibited all involved from participating in the stock market for a period ranging from one to five years. Additionally, SEBI has levied a fine of five lakh rupees on Arshad and his wife.

Arshad's wife also involved

In addition to Arshad and his spouse, the Securities and Exchange Board of India (Sebi) has levied penalties ranging from Rs 5 lakh to Rs 5 crore on 57 individuals and entities. The promoters of Sadhana Broadcast are also implicated. Moreover, they were instructed to return illicit profits totaling Rs 58.01 crore with an annual interest rate of 12 percent. Sebi's investigation further uncovered that Arshad Warsi earned a profit of Rs 41.70 lakh, while Maria Goretti gained Rs 50.35 lakh.

The plan involved a 'pump and dump' strategy, where deceptive YouTube videos were employed to artificially boost SBL's stock price before the promoters offloaded their shares. SEBI's inquiry, spanning from March 8, 2022, to November 30, 2022, revealed comprehensive details of this fraudulent scheme. Additionally, SEBI discovered a paid marketing campaign designed to spread misinformation on YouTube to lure unsuspecting investors.

Whatsapp chat exposed

A WhatsApp conversation took place between Arshad and Manish Mishra, discussing the intended transfer of Rs 25 lakh each by his wife and brother. In response to this fraud case, SEBI has banned seven individuals from the stock market for five years. Additionally, 57 others have been banned for one year.