SEBI Bans Arshad Warsi, Wife Maria Goretti for One Year in Stock Market Scam Case

According to SEBI, the group was part of a coordinated "pump and dump" operation aimed at artificially inflating the stock price of Sadhana Broadcast. Once the price was elevated, shares were offloaded to unsuspecting retail investors, resulting in illegal gains.

As part of the penalty, SEBI has directed Arshad Warsi, his wife, and his brother to pay a fine of ₹5 lakh each and return a total of ₹1.05 crore in illicit profits.

The market regulator also found that the trio had coordinated with Manish Mishra, who was allegedly the mastermind behind the fraudulent scheme. Mishra reportedly promoted the stock through misleading YouTube videos and paid online campaigns designed to mislead retail investors.

SEBI uncovered WhatsApp conversations between Mishra and Warsi that revealed a plan to transfer ₹25 lakh each to the bank accounts of Arshad Warsi, Maria Goretti, and his brother. The investigation further revealed that Warsi was trading not only from his personal account but also using the accounts of his wife and brother. His official statement was recorded by SEBI on June 27, 2023.

In total, SEBI has banned seven individuals from trading for five years and 54 others, including the Warsi family, for one year. SEBI termed the operation a classic example of a "pump and dump" scam, where the stock price of a relatively obscure company was artificially boosted using false and misleading information, before being sold off at inflated rates.

While Arshad Warsi has claimed that he was new to stock trading and unaware of the potential risks, SEBI's findings suggest otherwise, pointing to his active participation in the scheme.

This development has sent shockwaves through the entertainment industry and financial circles alike, highlighting once again the growing need for investor awareness and vigilance in the stock market.