Bollywood actor Arshad Warsi, known for his portrayal of “Circuit” in the Munna Bhai movies, along with his wife and 57 others, have been banned from trading in the stock market for one to five years by SEBI, India’s market regulator.
Highlights
- SEBI prohibits Arshad Warsi, wife Maria, brother Iqbal, and 56 others for 1–5 years in a ₹58 crore stock manipulation case.
- Illegal profits: Arshad made ₹41.7 lakh, Maria ₹50.35 lakh via timed trades linked to fake YouTube videos.
- WhatsApp chats indicate that Arshad followed instructions from scam mastermind Manish Mishra, reported by SEBI.
About Sadhna broadcast: Click here
Sadhna Broadcast, a Bhopal-based company, was established in 1994. The group operates several media-related businesses, most notably the popular socio-religious television channel Sadhna TV, which broadcasts religious sermons and ceremonies from across the nation. The channel’s launch in 2003 was innovative, significantly contributing to the company’s rapid growth. Sadhna Broadcast Limited has been renamed to Crystal Business System Limited this year.
Modus Operandi: Fabricated Videos & Coordinated Trading
Two-Phase “Pump-and-Dump” Scheme
Phase 1: Artificially Inflate Prices
- A group led by Gaurav Gupta, Rakesh Gupta, and YouTuber Manish Mishra traded shares among themselves, pushing up the price of Sadhna shares.
- Because the stock was not traded frequently, even small trades caused significant price jumps, making it appear as though there was growing interest in the company.
Phase 2: Lure Retail Investors via YouTube
- Misleading videos were posted on YouTube channels, including Moneywise, The Advisor, and Profit Yatra, all of which are operated by Manish Mishra. These videos falsely claimed that Sadhna Broadcast was about to be acquired by a big group or sign huge contracts, encouraging ordinary people to buy shares.
- As more people bought the shares, the price continued to rise. The main players then sold their shares at these high prices, making huge profits and leaving regular investors with losses.
These images are used for news reporting and informational purposes only. Image source: SEBI
“The price was systematically pushed upward through collusive trading, followed by aggressive promotional activity to draw in retail investors, and finally, a coordinated sell-off by the promoters,” said Ashwani Bhatia, SEBI’s whole-time member.
The investigation revealed that Gaurav Gupta earned the highest profit of Rs 18.33 crore from the scheme, while Sadhna Bio Oils Pvt Ltd made Rs 9.41 crore. SEBI has directed both to return the profits. Additionally, an IPS officer involved settled with SEBI by paying the required amount.
| Category/Role | Key Entities | Penalty & Ban |
| Masterminds | Gaurav Gupta, Rakesh Kumar Gupta, Manish Malhotra | Up to ₹5 crore fine, 5-year ban |
| Middlemen / Facilitators | Subhash Aggarwal (RTA director), Peeyush Agarwal (dealer), Lokesh Shah (broker), Jatin Manubhai Shah | Peeyush & Lokesh: Up to ₹2 crore fine, 5-year ban; Jatin Shah: ₹1 crore fine, 5-year ban |
| Volume Creators | Arshad Warsi, Maria Goretti, Iqbal Warsi, Manager | ₹5 lakh fine each, 1-year ban |
| Net Sellers/Promoters | Varun Media, Sadhna Bio Oils Pvt Ltd | Up to ₹5 crore fine, up to 5-year ban (Varun Media: no fine due to insolvency) |
| Other Entities | Numerous individuals/entities | ₹5 lakh–₹5 crore fine, 1–5 year ban |
These 59 entities violated provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules.In May 2025, the ban expanded to 59 entities, with fines up to ₹5 crore and a recovery of ₹58.01 crore plus 12% interest. SEBI revealed WhatsApp chats in which Manish Mishra instructed Warsi to buy shares, which he traded through his and his family’s accounts. As a result, Arshad earned ₹41.70 lakh, while his wife, Maria, made ₹50.35 lakh.
The Pump-and-Dump Scheme Explained: Click here
In this classic scam, manipulators first “pump” up a stock’s price through coordinated trades and fake news (here, via YouTube videos). Once the price is high and retail investors are drawn in, the masterminds “dump” their shares at inflated prices, leaving ordinary investors with losses.
Investors should be cautious about trusting advice from unverified YouTube channels or social media. Always verify whether the individual providing the advice is registered with SEBI (Securities and Exchange Board of India). Avoid getting swept up in hype: if the promised returns sound too good to be true, they probably are. Conduct thorough research to understand a company’s fundamentals before making any investment decisions.
SEBI’s crackdown underscores the risks of social media-driven stock scams and the importance of regulatory vigilance.
