Youtube Stock Manipulation: SEBI Gets Extension To Complete Investigation Against Arshad Warsi
If the investigation is not completed within the time frame, Warsi is open to trading his stake in Sadhna, the tribunal said.
The Securities and Appellate Tribunal on Wednesday allowed SEBI another two months to complete its investigation against actor Arshad Warsi, regarding his alleged involvement in the manipulation of stocks of Sadhna Broadcast Ltd.
Further, a show cause notice must be issued within two weeks of the completion of the investigation. If the investigation is not completed within the stipulated time, the order barring Warsi from trading in Sadhana's stock will be vacated, and it will be open for him to trade in the company's shares.
The tribunal, in an order passed on March 27, had directed the Securities and Exchange Board of India to complete an investigation against Warsi within six months. The period came to an end on Sep 27. The order also barred Warsi from trading in the shares of Sadhna until the completion of the market regulator's investigation.
Warsi, his wife, Maria Goretti, and 29 other entities were barred from the securities market on March 2 by an interim order of the regulator, following allegations of market manipulation. They were accused of manipulating the stock of Sadhna Broadcast Ltd. through YouTube videos. Warsi challenged the order in the appellate tribunal, citing a lack of evidence and reason in the regulator’s order.
The tribunal, agreeing with Warsi's claims, had set aside the interim order against Warsi. The tribunal held that there was no evidence to show that they induced innocent investors to buy shares of Sadhna. According to it, they are not involved in the increase in the price of the scrip, nor did they ever take part in its distribution or feature in the alleged videos. They were also not connected with any of the shareholders or key managerial personnel, the court had held.
