Sebi bans Arshad Warsi, 58 Others From Securities Mkts

New Delhi: Sebi on Thursday barred Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 other entities from the securities markets for periods ranging from 1-5 years in a case related to misleading videos on YouTube channels recommending investors to buy shares of Sadhana Broadcast.

The regulator imposed a fine of Rs 5 lakh each on Warsi and his wife Maria. Sebi also levied penalties in the range of Rs 5 lakh to Rs 5 crore on 57 other entities, including promoters of Sadhana Broadcast (now Crystal Business System Ltd). Apart from the debarment, Sebi also directed these entities to disgorge total unlawful gains of Rs 58.01 crore along with 12 per cent interest per annum from the end of the investigation period till the date of actual payment.

Sebi noted that Arshad Warsi had made a profit of Rs 41.70 lakh and his wife earned a profit of Rs 50.35 lakh. In the final order, Sebi found that the masterminds behind this whole operation were Gaurav Gupta, Rakesh Kumar Gupta and Manish Mishra. Subhash Aggarwal, who also happened to be a director of the RTA of Sadhana Broadcast Ltd (SBL), acted as the go between Manish Mishra and the promoters, the order stated.

These individuals were the central characters who planned and executed the manipulative scheme, Sebi said. Further, the regulator observed that Peeyush Agarwal and Lokesh Shah who facilitated accounts controlled by them to be used for the manipulative designs of Manish Mishra and the promoters of SBL. The former was a dealer at Choice and the latter the owner of the Delhi franchise of the stockbroker. They were both vital cogs who facilitated large scale manipulation in the scrip.