In a dramatic twist, SEBI has cracked down on actor Arshad Warsi, his wife Maria Goretti, and his brother, barring them from accessing the securities market for one year. The allegation? Involvement in a classic pump-and-dump scheme involving shares of Sadhna Broadcast Ltd, now renamed Crystal Business System Ltd.
SEBI’s Final Verdict: Banned and Penalised
According to SEBI’s final order, Arshad Warsi and his family, along with 59 others, were part of a larger conspiracy that involved artificially inflating stock prices of Sadhna Broadcast and then offloading them to unsuspecting retail investors.
SEBI has also slapped a monetary penalty of ₹5 lakh each on Warsi, his wife, and his brother. What’s more—SEBI has ordered the disgorgement of ₹1.05 crore, which was the alleged profit earned through these manipulations.
The WhatsApp Evidence
A key player in this scheme was one Manish Mishra, who allegedly coordinated structured trades and created misleading YouTube videos to push the stock. SEBI discovered WhatsApp chats showing Mishra offered to transfer ₹25 lakh each to Arshad, his wife, and his brother—fueling suspicions of a deliberate plan.
Warsi’s Defence: “We Were Misled”
Arshad Warsi has denied wrongdoing, claiming he and his family are new to the stock market and were acting on the advice of Mishra. He further stated that they incurred substantial losses in the trades, arguing that they were actually victims of a larger fraud.
However, SEBI remains unconvinced. The regulator noted that Warsi not only traded from his own account but also used accounts of his wife and brother—indicating deeper involvement.
Massive Crackdown: 60 People in Trouble
In total, seven people have been banned for five years, while 54 individuals including the Warsi family have been barred for one year. The case exposes a sinister side of the market—where social media, celebrity influence, and misinformation combine to manipulate retail investors.
SEBI’s move sends a strong signal: celebrity status won’t shield you from the law.
