44 people including actor Arshad Warsi banned from the stock market: Manipulated two shares by uploading a video

45 individuals and companies, including Bollywood actor Arshad Warsi and his wife Maria Goretti, have been banned from the securities market by the Securities Exchange Board of India (SEBI). The decision has been taken following an investigation into allegations of manipulation of the share price of two companies, Sharpline Broadcast Limited and Sadhna Broadcast Limited, by uploading misleading videos on YouTube channels.
SEBI found that shares of two companies were being manipulated through misleading videos on some YouTube channels. Investors were advised to buy shares of Sadhna Broadcast Limited and Sharpline Broadcast Limited for exceptional profits. Action has been taken against Warsi and his family members in the case of Sadhna Broadcast.
Some promoter shareholders of Sadhna, Key Management Personal (KMP), and non-promoter shareholders, who held more than 1% shareholding in the company, sold a major part of their holding at inflated prices and booked profits. Arshad Warsi made a profit of 29.43 lakhs, Maria Goretti 37.56 lakhs and Iqbal Hussain Warsi 9.34 lakhs.
As on May 20, 2022, the share price of Sadhna Broadcast was Rs.5.70. On August 12, 2022, the share price increased to Rs.33.20. On February 15, the rate reverted to Rs 5.50. Promoters also sold shares continuously. On the other hand, the share price of Sharpline Broadcast was Rs 7.35 on March 25, 2022. On June 13, 2022, the rate increased to Rs.53.30. Then on March 2, 23, the price came back to Rs.6.80.
Sanjeev Kumar Jha is the director of both companies. Apart from this, the Statutory Auditors of both companies are BAS & Co. LLP. The secretarial auditor of both companies is also A V Kumar & Associates. The Registrar and Transfer Agent is also a Skyline Financial. Sharpline Broadcast holds a 9.4% stake in Sadhna Broadcast.
The investigation was initiated after SEBI received complaints. It was alleged that some entities were misappropriating the shares of Sadhna Broadcast Limited and Sharpline Broadcast Limited. The complaints also alleged that misleading videos about the two companies were uploaded on YouTube channels to lure investors.
SEBI found that between April and July 2022, there was a sudden increase in the price and volume of the shares of both companies. In July 2022, false and misleading videos of Sadhna Broadcast were uploaded on two YouTube channels, Advisor and Moneywise. Similarly, Sharpline Broadcast Limited's videos were uploaded in May 2022 on two YouTube channels, Midcap Call and Profit Yatra.
Due to the YouTube video, there was a massive increase in the number of small shareholders in Sadhna Broadcast from 2,167 to 55,343, who bought shares at an inflated price. In the case of Sharpline Broadcast Limited, the number of small shareholders increased from 517 to 20,009. These channels have now been closed. The comments were also kept off in the channels.