Sebi's big action against Arshad Warsi and others! What Is pump-and-dump scam?

Pump-and-dump is a manipulative scheme that attempts to boost the price of a stock or security through fake recommendations

What is pump-and-dump

The offender of a pump-and-dump scheme already has a position in the company's stock and sells their position after the hype has led to a higher share price

Pump-and-dump scheme:
How it works

Securities and Exchange Board of India (Sebi) barred 45 entities, including actor Arshad Warsi, his wife Maria Goretti and others, from the securities market in cases related to manipulating the share prices of two companies through uploading misleading videos on YouTube channels

Sebi's big action against
Aarshad Warsi

Sebi has taken strict action in the share-rigging case in two companies, namely Sadhna Broadcast and Sharpline Broadcast

Pump-and-dump scam:
Companies in focus

YouTube videos on channels named 'The Advisor' and 'Moneywise' were used to recommend shares of Sadhna Broadcast and Sharpline, Such videos were also uploaded on two YouTube channels- Midcap calls and Profit Yatra in the second half of May last year

About pump-and-dump

For Sadhna Broadcast, the probe was conducted between April 27, 2022, to September 30, 2022, whereas the period for Sharpline Broadcast was between April 12, 2022, to August 19, 2022

Sebi in action

Shares of Sadhna Broadcast ended 3% lower at Rs 5.50 on BSE on Thursday. Market cap of the firm fell to Rs 55.15 crore

Sadhna Broadcast on

Shares of Sharpline Broadcast ended 1.7% lower at Rs 6.80 on BSE on Thursday. Market cap of the firm fell to Rs 7.82 crore

Sharpline Broadcast
on D-Street

Sebi has restrained the offenders Arshad Warsi, his wife Maria Goretti and others from buying, selling or dealing in securities either directly or indirectly, in any manner whatsoever, until further orders

Pump-and-Dump Scam:
The ban

The content in the story is for information purposes only. Investors or market participants should consult their financial advisors before taking any position


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