SEBI Bars Arshad Warsi and Others for Misusing Social Media to Aid Price Manipulation!
The Securities and Exchange Board of India (SEBI) has issued orders against Sadhna Broadcast and Sharpline Broadcast for misusing social media to aid price manipulation. The actor Arshad Warsi, his wife Maria Goretti, and officials of Sadhna Broadcast have been banned from the securities market by the securities commission for posting fake films on YouTube channels urging viewers to purchase the stock of the company. Following the posting of misleading films on YouTube channels, SEBI seized illegal profits made by the companies totaling Rs 41.85 crore.
Firstly, the case highlights the growing importance of social media in the securities market. Investors now depend heavily on social media sites for information, and companies have been using this to their advantage to influence the market. Investors must be cautious and verify the information before making any investment decisions.
Secondly, SEBI’s orders emphasize the need for all market participants to act with integrity and transparency. Companies, promoters, directors, and investors must comply with the rules and regulations, and any misconduct will face strict action.
Thirdly, SEBI’s actions demonstrate the regulator’s commitment to maintaining the integrity of the securities market. The regulator has been actively monitoring the market and taking strict action against any entities that violate the rules and regulations.
Media controversies surrounding the Sadhna scrip included allegations of share unloading by entities and price manipulation, which SEBI was accused of. The price and volume of the scrip increased as a result between April and September 2022, and two YouTube channels called “The Advisor” and “Moneywise” posted erroneous and misleading videos about Sadhana. According to SEBI’s interim ruling, these YouTube videos spread untrue and deceptive information to encourage investors to purchase Sadhna stock in the hopes of making spectacular profits.
SEBI has divided 31 companies into four categories: information carriers, net sellers/promoters and profit makers (NSs), and producer of YouTube channels (Manish Mishra) (ICs). Volume Creators include Arshad Warsi and his wife. SEBI has taken strict action against those who manipulate prices using social media platforms, emphasizing the need for ethical practices in the securities market.
The regulator has also restrained the promoters of Sadhna Broadcast from accessing the securities market and also directed the company to conduct a forensic audit to ascertain the role of its directors and employees in the matter. Furthermore, SEBI has imposed a penalty of Rs 10 lakh on the promoters of Sharpline Broadcast for failing to disclose their shareholding in the company and a penalty of Rs 5 lakh on the independent directors of Sadhna Broadcast for not discharging their fiduciary duties.
The actions taken by SEBI highlight the need for all market participants, including companies, promoters, directors, and investors, to act responsibly and with integrity. The regulator has been actively monitoring the securities market for any malpractices and has been taking strict action against entities that violate the rules and regulations.
To sum up, SEBI’s action against Sadhna Broadcast and Sharpline Broadcast serves as a reminder that investors must be cautious while investing in the securities market and not to fall prey to false and misleading information.