Sadhana Broadcast: Sebi bans actor Arshad Warsi, 58 others from markets for up to 5 years
New Delhi, May 29 (PTI): Sebi on Thursday barred Bollywood actor Arshad Warsi, his wife Maria Goretti, and 57 other entities from the securities markets for periods ranging from 1-5 years in a case related to misleading videos on YouTube channels recommending investors to buy shares of Sadhana Broadcast.
The regulator imposed a fine of Rs 5 lakh each on Warsi and his wife Maria.
Sebi also levied penalties in the range of Rs 5 lakh to Rs 5 crore on 57 other entities, including promoters of Sadhana Broadcast (now Crystal Business System Ltd).
Apart from the debarment, Sebi also directed these entities to disgorge total unlawful gains of Rs 58.01 crore along with 12 per cent interest per annum from the end of the investigation period till the date of actual payment.
Sebi noted that Arshad Warsi had made a profit of Rs 41.70 lakh and his wife earned a profit of Rs 50.35 lakh.
In the final order, Sebi found that the masterminds behind this whole operation were Gaurav Gupta, Rakesh Kumar Gupta and Manish Mishra. Subhash Aggarwal, who also happened to be a director of the RTA of Sadhana Broadcast Ltd (SBL), acted as the go between Manish Mishra and the promoters, the order stated.
These individuals were the central characters who planned and executed the manipulative scheme, Sebi said.
Further, the regulator observed that Peeyush Agarwal and Lokesh Shah who facilitated accounts controlled by them to be used for the manipulative designs of Manish Mishra and the promoters of SBL.
The former was a dealer at Choice and the latter the owner of the Delhi franchise of the stockbroker. They were both vital cogs who facilitated large scale manipulation in the scrip.
Similarly, Jatin Shah played a leading role in operationalising the scheme, while other entities have facilitated the manipulative designs or were in it to make a quick buck, the order said.
As per the 109-page order, Sebi said noticees (entities) have acted as information carriers or assisted in placing the manipulative trades, but not traded in the scrip from their own accounts.
Sebi said carefully structured scheme executed in two coordinated phases. In the first phase, connected and promoter-linked entities executed trades among themselves to steadily inflate the price of the scrip and create a false appearance of market interest.
These trades though often small in volume had a disproportionate impact on price due to low liquidity, allowing the perpetrators to push the scrip upward with relatively minimal trading outlay.
In the second phase of the scheme misleading and promotional videos were disseminated across YouTube channels such as Moneywise, The Advisor, and Profit Yatra, all operated by Manish Mishra, the order said.
These videos presented SBL as a promising investment opportunity and were timed to coincide with and amplify artificial market activity, it added.
The order came after the Securities and Exchange Board of India (Sebi) received complaints from the during the period July to September 2022, alleging that there was price manipulation and subsequent offloading of shares in the scrip of SBL.
It was also stated in the complaints that YouTube videos were being uploaded with false content to lure investors and a paid marketing campaign worth crore was undertake to make the videos reach a wider audience.
An interim order was passed by the regulator on March 2, 2023 was passed against 31 entities.
Thereafter, Sebi conducted a detailed investigation into the alleged manipulation in the scrip of SBL for the period from March 8, 2022 to November 30, 2022.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Mumbai-Pune Expressway connecting link now fully operational
Mumbai (PTI): The Mumbai-bound carriageway of the Mumbai-Pune Expressway connecting link was opened to vehicular traffic on Saturday noon after a delay caused by the dismantling of inauguration infrastructure and cleaning work, a day after the Pune section became operational.
The 13.3 km-long "missing link", which bypasses a section of the Bhor Ghat stretch of the expressway and cuts travel time between Mumbai and Pune by 25 to 30 minutes, was inaugurated a day earlier by Chief Minister Devendra Fadnavis in the presence of Deputy CMs Eknath Shinde and Sunetra Pawar.
The Pune-bound carriageway of the corridor was opened to traffic immediately; however, the Mumbai-bound section remained closed to traffic for several hours after the inauguration.
An official of the Maharashtra State Road Development Corporation told PTI on Saturday that the opening of the Mumbai-bound carriageway was delayed mainly due to the dismantling of the inauguration infrastructure and cleaning work.
The removal of the stage and other decorations was completed in the morning. The work to load and transport the material slightly delayed the opening of the carriageway.
Vehicular movement on the carriageway began after all the remaining material was cleared and road cleaning was completed, the official added.
The expressway control room said that despite significant vehicular movement, the access-controlled highway has not witnessed any major traffic snarls since Friday evening, after the Pune-bound carriageway of the missing link was opened to traffic.
The Missing Link project connects Khopoli (in Raigad) on the Mumbai side to Kusgaon near Lonavala in Pune district and is expected to make the expressway fully access-controlled, easing congestion in the ghat section.
Developed by the MSRDC and dubbed an "engineering marvel", the project includes two tunnels, two viaducts and a cable-stayed bridge over Tiger Valley. It bypasses the steep, accident-prone ghat section, where frequent traffic snarls are reported during weekends and on public holidays.
