Securities and Exchange Board of India (SEBI) on Thursday clamped down actor Arshad Warsi and 45 other people on doing Share Pump & Dump through youtube. Further, the market regulator has barred them from further accessing the markets for one year.
Interestingly, Bollywood actor Arshad Warsi and his wife Maria Goretti Warsi have been penalised in relation to the case, where a nexus of players, are accused of making illegal gains worth Rs 41.85 crore.
SEBI on Thursday has taken strict action in the share-rigging case in two companies, namely Sadhna Broadcast and Sharpline Broadcast. The capital markets regulator has issued an impounding order in the Sadhna Broadcast share rigging case, whereas it has issued an interim order in the Sadhna Broadcast share manipulation case.
According to the market regulator’s calculation, Warsi made a profit of Rs 29.43 lakh while his wife bagged Rs 37.56 lakh. SEBI has directed the impounding and retaining of profits made by the actor couple as well as other accused in the case. These gains were made between April 27 to September 30 last year.
Further, the market regulator has barred them from further accessing the markets. The couple, along with others named in the case, have been directed to deposit the impounded amount in a scheduled bank in 15 days with a lien created in favour of SEBI. They have also been directed “not to dispose of or alienate any assets, whether movable or immovable or create any interest or charge on any of such assets held in their name".
It was alleged that there was price manipulation and offloading of shares by certain entities in the aforementioned scrips. The said complaints alleged that YouTube videos with false content, backed by paid marketing campaigns worth crores of rupees for additional reach were being uploaded to lure investors. Further, spent on Ads to reach a wider audience.
Then they dump their stock holdings and in return make neat profits.
Sebi conducted its probe (preliminary examination) in the matters under Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations (PFUTP Regulations) 2003 of SEBI Act, 1922
For Sadhna Broadcast, the probe was conducted between April 27, 2022 to September 30, 2022, whereas the period for Sharpline Broadcast was between April 12, 2022 to August 19, 2022, said the regulator in two separate orders.
In its two interim orders, Sebi has restrained all the offenders from buying, selling or dealing in securities either directly or indirectly, in any manner whatsoever, until further orders.
If they have any open position in any exchange-traded derivative contracts, as on the date of these orders, they may close/square off such positions within three months from the date of this order or expiry of such contracts, whichever is earlier, the order added.