YouTube Hype, Bollywood Faces, and a Stock Market Sting: SEBI’s Blockbuster Crackdown on Sadhna Broadcast

• Who’s Barred: Seven individuals, including promoters Gaur Gupta and Rakesh Kumar Gupta, face five-year bans; 52 others, including Arshad Warsi and Maria Goretti, are barred for one year.
• Monetary Penalties: SEBI has imposed total fines of approximately ₹20 crore. Warsi and Goretti were each fined ₹5 lakh, with orders to return illegal profits—₹41.70 lakh (Warsi) and ₹50.35 lakh (Goretti).
• Disgorgement: All 59 entities must jointly disgorge unlawful gains totaling ₹58.01 crore, plus 12% annual interest, for profits made during the manipulation window.

How the Scam Worked: The scheme unfolded in two phases:

• Phase 1: Collusive trading by connected parties to artificially boost the stock price of Sadhna Broadcast, creating the illusion of genuine investor interest.
• Phase 2: Aggressive promotion via YouTube channels—such as Moneywise, The Advisor, and ProfitYatra—spreading false claims (e.g., 5G licenses, Adani acquisition, major contracts) to attract retail investors.
• Retail Investors Trapped: As the price peaked (₹33), promoters and operators dumped their shares, leaving retail investors with steep losses as the stock crashed to ₹2.75.
• SEBI’s Message: The order underscores SEBI’s resolve to combat social media-driven market frauds and protect retail investors from manipulative online campaigns.

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