The Securities and Exchange Board of India (SEBI) has imposed a major crackdown on stock market manipulation by banning Bollywood actor Arshad Warsi, his wife Maria Goretti, and 58 other individuals from participating in the securities market for up to five years. This decisive action came after SEBI’s investigation revealed their involvement in a pump-and-dump scheme that artificially inflated share prices of certain companies.
The probe centered around two companies: Sadhna Broadcast Ltd and Sharpline Broadcast Ltd. According to SEBI, misleading videos were circulated on YouTube, making exaggerated claims about the companies’ prospects. These videos generated false investor interest, driving up the stock prices. Once the prices surged, the accused individuals offloaded their holdings, making substantial illegal gains while leaving retail investors with losses.
Arshad Warsi and Maria Goretti were found to have gained significantly from these transactions. SEBI has not only barred them from trading in securities but also directed them to disgorge the profits earned through this fraudulent activity. The ban period ranges from one year to five years, depending on the level of involvement of each individual.
This incident has raised serious concerns over the misuse of social media platforms like YouTube to manipulate investor sentiment. SEBI has emphasized the importance of investor awareness and cautioned the public against relying solely on unverified online financial advice.
This action underlines SEBI’s ongoing efforts to protect retail investors and maintain the integrity of the Indian capital markets. It serves as a warning to those who attempt to exploit the market through unethical means, regardless of their celebrity status.
As the case continues to unfold, SEBI is expected to tighten surveillance and introduce stricter norms to curb digital misinformation in the stock trading ecosystem.