SEBI bans famous Bollywood, Actor Arshad Warsi & Others

India Regulator, Securities and Exchange Board(SEBI) of India Bollywood Actor Arshad Warsi, his wife Maria Goretti, and 57 others have been banned from trading in the securities market for a period ranging from one to five years.

The authority has also imposed a fine of ₹5 lakh each on Arshad Warsi and his wife. SEBI's investigation revealed that misleading videos were uploaded on YouTube channels, advising investors to buy shares of a company named Sadhna Broadcast. Through these videos, the stock prices were manipulated to generate profits. Arshad Warsi earned ₹41.70 lakh from this, while his wife Maria made a profit of ₹50.35 lakh.

As per SEBIs report, actor Arshad Warsi, in a statement dated June 27, 2023, confessed to trading not just under his own name, but also using the accounts of his wife and brother. His manager, Ahuti Mistry, was also implicated in the case. SEBI has instructed all those involved to repay unlawful profits amounting to around ₹58.01 crore to the government. Additionally, they are required to pay this sum with an interest rate of 12% per year.

How did SEBI Uncover this Scam?

SEBI received multiple investor complaints claiming that the shares of SBL were manipulated and offloaded for profit. The complaints further mentioned that false and misleading videos were posted on YouTube to lure potential investors. These videos were actively promoted to maximize their reach. Along with the complaints, SEBI was also given the names of the YouTube channels and direct links to the videos involved.

About SEBI

The Securities and Exchange Board of India (SEBI) is the regulating authority for India's securities and commodity markets. The Securities and Exchange Board of India's fundamental functions include ...protecting the interests of investors in securities, promoting the development of, and regulating the securities market.