Have you ever bought a stock just because a Bollywood celebrity endorsed it? Now imagine if that stock turned out to be a scam and you lost all your money. This is exactly what happened in the case of Sadhna Broadcast, where market regulator SEBI has banned actor Arshad Warsi, his wife Maria Goretti, and 57 others from the stock market. But who was the mastermind behind this scheme? How were innocent investors trapped through YouTube videos? And what happens next? Let’s break it down.

SEBI has imposed a trading ban ranging from one to five years on 59 individuals for their involvement in a market manipulation scam. The most high-profile names in this list are Bollywood actor Arshad Warsi and his wife Maria Goretti. Additionally, a monetary penalty of ₹55 lakh has also been imposed. According to SEBI’s findings, Arshad Warsi earned approximately ₹41.7 lakh from the scheme, while Maria Goretti gained around ₹50.35 lakh.

But how did they earn this money, and how did thousands of small investors suffer losses?

The most intriguing aspect of this case is that the entire scam was executed through YouTube. Several fake YouTube channels uploaded videos promoting Sadhna Broadcast, claiming that the company was on the verge of massive growth. These videos referred to the company as a potential "multibagger," suggesting its share price could multiply ten to twenty times in a short span.

This online promotion led to a surge in interest among retail investors, causing the stock price of the company to rise artificially. This is a textbook example of a "pump and dump" scheme. In such frauds, the price of a stock is first "pumped" up using fake trading and promotional content, creating artificial demand. Once the general public starts buying in, the manipulators "dump" their holdings at high prices, making profits while retail investors are left holding overvalued shares that soon crash.

This is exactly what happened with Sadhna Broadcast, a small television channel company now known as Crystal Business System Ltd. Around mid-2022, the share price of the company suddenly jumped to ₹33 from significantly lower levels. During this period, several YouTube channels aggressively promoted the stock, calling it the next big opportunity, which further lured small investors.

SEBI’s investigation also revealed that the entire scheme was planned using WhatsApp groups and private communications. Arshad Warsi and his wife not only recommended the stock in YouTube videos but also traded it themselves, earning substantial profits.

Complaints about manipulation in Sadhna Broadcast’s stock started surfacing between July and September 2022. SEBI conducted a detailed investigation covering the period from March 8, 2022, to November 30, 2022. An interim order was passed in March 2023 against 31 people. Later, on May 29–30, 2025, SEBI issued its final order penalizing 59 individuals.

According to SEBI, these individuals violated the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations. For Arshad Warsi and the others, this case has not only brought financial penalties but also caused significant damage to their public image.

This case underscores the importance of transparency in the stock market. For common investors, trusting celebrity endorsements or viral YouTube videos without proper due diligence can be extremely risky.

SEBI’s message through this action is clear: do not fall for flashy promotions, especially those that bypass regulatory norms. Always consult your financial advisor before making any investment decision. Your savings are a result of your hard work and deserve to be protected with proper research and advice.

This article is intended solely for informational purposes and aims to educate readers about the risks of stock market manipulation and the importance of informed investing.

Disclaimer:
This article is for informational purposes only and should not be considered financial advice. Always consult a certified financial advisor before making any investment decisions. The author and the website are not responsible for any financial losses arising from investment decisions based on this content.