Arshad Warsi, wife stare at fresh trouble as Sebi issues show cause notice in Sadhna Broadcast case

The capital markets regulator Sebi has now issued a fresh show cause notice to Arshad Warsi, wife Maria Goretti, brother Iqbal Warsi  and manager Aahuti Mistry in the pump and dump scheme carried out by Sadhna Broadcast through You Tube channels, reported Business Standard.

In the fresh notice, Securities Exchange Board of India has named 61 entities, including promoter group entities of SBL, alleging illegitimate gains to the tune of ₹59.77 crore.

It is worth remembering here that the regulator on March 2, 2023 had barred Warsi and promoters of Sadhna Broadcast from the securities market in a case related to uploading misleading videos on YouTube channels which recommended investors to buy the company’s securities.

Sebi submits WhatsApp chats as evidence

The regulator has now submitted WhatsApp chats with Manish Mishra, who operated the YouTube channels, along with details of trades.

“The initial amount of ₹25 lakh each in the bank accounts of Arshad Warsi, Maria Goretti, and Iqbal Warsi was deposited by Manish Mishra. Thereafter, Manish used to instruct Arshad Warsi (who was also acting on behalf of Maria and Iqbal) on trades to be executed, including those in the scrip of SBL,” the notice observes.

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“...it was evident that both Aahuti Mistry and Arshad Hussain Warsi were aware of the scheme being orchestrated by Manish Mishra. By trading on the instructions of Manish Mishra, they aided and abetted Manish Mishra in executing his pump and dump scheme in the scrip of SBL,” it reads.

Relief from SAT

Notably, actor and his wife received interim relief last year in March from the Securities Appellate Tribunal (SAT). 

The tribunal had set aside the regulator’s order debarring the couple from the securities market and ordered them to deposit 50 per cent of the alleged wrongful gains in an escrow account.

The tribunal had directed Sebi to complete the probe within six months.

In the interim order, Sebi had barred a total of 31 players from the securities market for alleged manipulation. 

As per Sebi, the modus operandi involved buying thinly-traded stocks of SBL before publishing videos disseminating false information on possible deals, financials, growth prospects, and expansions.