Seven individuals, including promoters Gaurav Gupta and Rakesh Kumar Gupta, have been banned for five years. Photo credit: Hemanshi Kamani
India’s Securities and Exchange Commission (SEBI) has imposed a penalty of around 20 crore on 59 people and has banned them from the securities market on alleged manipulation and fraudulent practices in Sadhna Broadcasting stocks.
Seven individuals, including promoters Gaurav Gupta and Rakesh Kumar Gupta, have been banned for five years. Fifty-two people, including actor Alshad Warsi and his wife Maria, have been banned from the market for a year.
Plans that misinterpret investors
The regulator found classic pump and dump schemes used in May to mislead investors through videos on YouTube channels such as MoneyWise, Advisor and Profitityatra, which recommend the company’s stock, known as Crystal Business Systems. All of these channels are run by Manish Mishra and have produced false claims about the company’s financial health and future prospects.
Prices were systematically pushed upwards through joint transactions, followed by aggressive promotional activities to attract retail investors, followed by a final adjusted sale by promoters. “Tendated by this gradual market activity, retail investors held their shares in a skewed valuation after the manipulators, including promoters, left,” Sebi’s full-time member Ashwani Bhatia said on the order.
From March 2022 to December 2022, promoter’s shareholdings fell by 15% from 40.95% to 25.58%. During the same period, the number of public shareholders increased from just 885 to 72,509, up from 59.05% as of March 2023 to a maximum of 74.52% as of March 2023.
Market operation
Bhatia said the event “paints a disturbing picture of the increasing use of social media platforms with great scope and influence in the digital age as a tool for market manipulation.”
He warned investors to follow proper due diligence, particularly while investing in companies that suddenly surge in prices without any underlying attributes.
Sebi said that different orders will soon be issued for the company and specific individuals.
Released on May 30, 2025
