Actor Arshad Warsi and 44 others, including his wife Maria Goretti, have been banned from the securities market for a year for allegedly manipulating share prices of two companies by uploading misleading videos on YouTube channels. After examining the cases under PFUTP Regulation 2003 of SEBI Act, 1922, SEBI through its order has banned them from the market. Here’s what you need to know about the case:
These share pump-and-dump cases relate to shares of two companies – Sadhna Broadcast Limited and Sharpline Broadcast Limited. As per the complaints, misleading videos were uploaded on YouTube channels advising investors to buy shares of the two companies to lure investors. ,
Following the complaints, market regulator SEBI conducted an examination during April-September 2022 and found a spurt in the share price and volume of both the companies between April and mid-July 2022.
In the second half of July 2022, false and misleading videos about Sadhna were uploaded on two YouTube channels – The Advisor and Moneywise.
In the second half of May 2022, similar videos about Sharpline were also uploaded on two YouTube channels – Midcap Calls and Profit Yatra.
As per SEBI’s interim orders, these YouTube videos spread false and misleading news to suggest that investors should buy shares of Sadhna and Sharpline for extraordinary profits.
Following the release of the misleading YouTube video, the share price and trading volume of the two firms soared. The volume appears to have been contributed by a large number of retail investors, possibly swayed by the misleading YouTube video.
During this period, some of the promoter shareholders, key management personnel of Sadhna and non-promoter shareholders sold a significant portion of their holding at inflated prices and booked profits.
how were youtube Video Confusing?
One of the misleading videos on these YouTube channels was that Sadhana Broadcast Limited was being acquired by the Adani Group and that the company’s margins would increase after the deal.
Apart from this, there were other videos such as the company moving from TV production to film production and a big US corporation signing a Rs 1,100 crore contract to produce four devotional films, where the money would be brought in by an American investor but The rights will remain with Sadhna and in one of the videos apparently industrialist Gautam Adani’s picture can be seen.
SEBI action
Apart from Arshad Warsi and his wife, some promoters of Sadhna Broadcast have been barred from the securities market for their involvement.
Apart from the market ban, SEBI has forfeited illegal gains of Rs 54 crore made by entities after uploading misleading videos on YouTube channels, according to two separate interim orders.
In the case of Sadhna Broadcast, Sebi said Arshad Warsi made a profit of Rs 29.43 lakh and his wife made a profit of Rs 37.56 lakh. Along with this, Iqbal Hussain Warsi has got the benefit of Rs 9.34 lakh. All three are classified as volume creators by the capital markets regulator.
The two orders came after the Securities and Exchange Board of India (Sebi) received some complaints alleging price manipulation and selling of shares by certain entities in the shares of television channel Sadhna Broadcast and New Delhi-based Sharpline Broadcast. Was staying
SEBI has classified these entities into categories such as creator of YouTube channels (Manish Mishra), net seller/promoter and profit maker (NS), volume creator (VC) and information carrier (IC).
SEBI said, prima facie, these entities collectively helped generate trading volume and interest in scrips, spread false and misleading YouTube videos, and hence induced investors to buy scrips of the companies at higher prices, thereby prima facie There was a violation of the provisions of PFUTP (Prohibition of Prohibition). Fraudulent and Unfair Trade Practices) Rules.
In Sadhna’s case, Sebi said the elaborate modus operandi adopted by the entities receiving the notices, including misuse of patently false and misleading YouTube videos, has led to a huge increase in the number of small shareholders – from 2,167 55,343 shareholders who ended up buying shares of net sellers and volume creators receiving notices at an increased price, while in case of Sharpline, the number of small shareholders increased from 517 to 20,009.
what did arshad warsi say
Arshad Warsi said in a tweet, ‘Please don’t believe everything you read in the news. I have zero knowledge about Maria and stocks, took advice and invested in Sharda, and like many others, lost all our hard earned money.”
(With inputs from PTI)
read all latest business news Here