Bollywood actor Arshad Warsi, known for his role as ‘Circuit’ in the Munna Bhai film series has been banned from the Stock Market. Along with Warsi his wife Maria Goretti and brother, are also barred from trading in the securities market for one year.
According to reports, the action was taken by the Securities and Exchange Board of India (SEBI). This comes after it found their involvement in a pump-and-dump scheme. The scheme is allegedly linked to Sadhna Broadcast Ltd. Which is now known as Crystal Business System Ltd.
Why was Arshad Warsi banned?
According to SEBI’s final order, the trio was part of a larger group of 59 individuals and entities. The group is accused of manipulating the stock price of Sadhna Broadcast. Reports suggest that the scheme unfolded in two phases.
First, connected entities traded shares among themselves to inflate the price. Second, misleading YouTube videos were circulated to lure retail investors. The investors were lured with false promises about the company’s growth prospects.
Fine of ₹5 lakh imposed on each
The market regulator found that Arshad Warsi made profits of ₹41.7 lakh. Meanwhile, Maria Goretti, his wife earned ₹50.35 lakh through these trades. SEBI has ordered the couple to pay a fine of ₹5 lakh each and return the illegal gains.
Overall, the group involved has been directed to repay ₹58.01 crore in unlawful profits. Along with this, an annual interest of 12% from the end of the investigation period until full repayment.
SEBI conducts probe
According to reports the manipulation was carried out through a coordinated effort. The group was led by key individuals including Manish Mishra, Gaurav Gupta, and Rakesh Kumar Gupta. Mishra operated YouTube channels such as Moneywise, The Advisor, and Profit Yatra.
He played a crucial role in spreading false information. SEBI’s probe uncovered WhatsApp messages between Mishra and Arshad Warsi, suggesting an offer to transfer ₹25 lakh each to Warsi, his wife, and his brother.
The videos were part of an orchestrated campaign designed to artificially boost the company’s stock price. This prompted retail investors to buy in at inflated rates. Once the price surged, the manipulators sold off their holdings, leaving unsuspecting investors with losses.
Key names involved
The key figures named in the scam include Peeyush Agarwal, a dealer at Choice; Lokesh Shah, who ran a brokerage franchise in Delhi. Furthermore, Subhash Aggarwal, a director at Sadhna’s registrar and transfer agent. Heavy penalties ranging from ₹5 lakh to ₹5 crore have been imposed on the 57 other entities involved. Meanwhile, some were banned for up to five years.
