In a major crackdown on stock market manipulation, the Securities and Exchange Board of India (SEBI) has barred Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 other individuals from the securities market for a period ranging from 1 to 5 years. The case involves the misuse of YouTube videos to artificially pump the stock price of Sadhna Broadcast Ltd, now known as Crystal Business Systems Ltd.
What is the Sadhna Broadcast Stock Manipulation Case?
SEBI’s investigation uncovered a well-planned “pump and dump” scheme involving misleading stock tips shared via popular YouTube channels. These videos presented Sadhna Broadcast as a multi-bagger stock opportunity, luring retail investors into buying the stock at inflated prices.
The videos were part of a larger conspiracy where insiders first artificially increased the stock price through low-volume trades and then dumped their holdings after creating fake market interest.
Why Arshad Warsi and Others Were Banned
SEBI found that Arshad Warsi and his wife Maria Goretti participated in the scheme by profiting from this manipulation:
Arshad Warsi made Rs 41.70 lakh in illegal gains
Maria Goretti made Rs 50.35 lakh
Both were fined Rs 5 lakh each
The total illegal gain across all 59 individuals was approximately Rs 58.01 crore, which now must be returned with 12% annual interest, as per SEBI’s final order.
Who Were the Masterminds?
According to SEBI’s detailed 109-page final report, the masterminds behind the scheme were:
Gaurav Gupta
Rakesh Kumar Gupta
Manish Mishra
Other Key Participants:
Subhash Aggarwal: Director at the registrar of Sadhna Broadcast, acted as a middleman
Peeyush Agarwal: Dealer at stockbroker ‘Choice’, allowed use of trading accounts
Lokesh Shah: Owner of Delhi franchise of a stockbroker, also allowed misuse of trading accounts
Jatin Shah: Played a leading role in executing the fraud
These individuals and their associates either carried out or facilitated the fake trades and misleading campaigns.
How Was the Fraud Executed?
SEBI explained the scam was carried out in two coordinated phases:
Phase 1: Inflating the Share Price
Promoter-linked entities traded shares among themselves
Due to low liquidity in Sadhna Broadcast stock, even small trades caused large price movements
This artificially boosted the price and gave a false sense of demand
Phase 2: YouTube Propaganda
Misleading videos were uploaded on YouTube channels like:
Moneywise
The Advisor
Profit Yatra
These channels were operated by Manish Mishra and promoted Sadhna Broadcast as a strong buy, claiming it would multiply investor wealth. These videos coincided with artificial price surges, encouraging public investment at inflated prices.
Timeline of Events and SEBI Action
March–November 2022: Period of manipulation
July–September 2022: SEBI received multiple complaints about fake YouTube videos and price manipulation
March 2, 2023: SEBI issued an interim order barring 31 individuals
May 29, 2025: Final order issued banning a total of 59 individuals
Summary of Transactions to Google AdSense (April 3, 2022 – October 3, 2022)
During the investigation period from April 3, 2022 to October 3, 2022, a total of Rs. 3.39 crore was transferred to Google AdSense from the Kotak Mahindra Bank account held by Manish Mishra. These transactions were related to payments made towards Google Ads, as reflected in the bank records.
What This Means for Investors and the Market
This case is a strong warning from SEBI against:
Stock manipulation via social media platforms
Misuse of celebrity influence in financial markets
Spreading false financial advice to trap retail investors
SEBI’s action highlights a growing trend where social media platforms like YouTube are being used to commit financial fraud, and it’s also a clear message that even celebrities will not be spared.
What Can Investors Learn?
1. Verify Before You Invest: Don’t rely solely on YouTube tips or celebrity endorsements
2. Check Stock Fundamentals: Analyze company earnings, revenue, and balance sheets
3. Look for Red Flags:
Sudden price spikes in low-volume stocks
Excessive online hype
Lack of institutional participation
4. Trust Registered Advisors Only: Always follow SEBI-registered advisors or research analysts
Conclusion
The Sadhna Broadcast scam is one of the most high-profile examples of how digital platforms can be misused for market manipulation. SEBI’s strong enforcement sends a clear message that no one is above the law, and efforts to mislead retail investors will be punished — whether you’re a promoter, broker, or Bollywood celebrity.
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