The Securities and Appellate Tribunal (SAT) granted interim relief to Actor Arshad Warsi and his wife Maria Goretti Warsi regarding their alleged involvement in the stock manipulation of Sadhna Broadcast through YouTube.
What Happened? Bar and Bench reported that the SAT order set aside SEBI’s directions, including its demand to freeze the accounts of entities involved, and reduced the ban on trading to a restraint on trading the scrip of Sadhna Broadcast Ltd.
However, Warsi must put 50% of the alleged illegal gain into an escrow account within 15 days of the order.
SEBI claims that Warsi and Goretti gained ₹76.33 lakh through the manipulative scheme, which they have reduced to ₹38.16 lakh.
The regulator barred Warsi, Goretti, and 29 other entities from the securities market on March 2 through an interim order following allegations of market manipulation. Warsi challenged the order in the appellate tribunal, citing a lack of evidence and reason in the regulator's order.
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The SAT concluded that there was no evidence to indicate that Warsi and Goretti induced innocent investors to buy shares of Sadhna, nor were they involved in increasing the price of the scrip or its distribution. Additionally, they did not feature in the alleged videos or connect with any of the shareholders or key managerial personnel.
SEBI contended that the fact that he did the trade was enough to make him part of the plot, but the SAT found merit in Warsi’s argument.
The SAT order states that there is absolutely no evidence to suggest that the appellants were involved in a planned scheme to encourage unknowing investors to purchase the securities in question.
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