Bollywood's Market Drama: Arshad Warsi and Others Caught in YouTube Share Scam

The Securities and Exchange Board of India (Sebi) has barred Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 others from the securities markets following an investigation into misleading investment videos on YouTube. The videos urged viewers to buy shares of Sadhana Broadcast, now known as Crystal Business System Ltd.

Sebi has slapped fines ranging from Rs 5 lakh to Rs 5 crore on these parties, including Rs 5 lakh each on Warsi and his wife. The regulator also ordered the disgorgement of unlawful profits totaling Rs 58.01 crore, with 12% annual interest from the end of the investigation period until payment. Arshad Warsi and Maria Goretti reportedly made profits of Rs 41.70 lakh and Rs 50.35 lakh, respectively.

The mastermind behind the operation, as Sebi revealed, included Gaurav Gupta, Rakesh Kumar Gupta, and Manish Mishra. Others, like Subhash Aggarwal, played pivotal roles in facilitating the manipulative trades. Sebi's investigation traced the deceitful scheme through two phases. Initially, connected entities manipulated trade prices, while later, promotional YouTube videos misrepresented SBL's market value to artificially boost interest and investments.

(With inputs from agencies.)