SEBI Cracks Down on Sadhna Broadcast Pump-and-Dump Operators Again

Fresh Raids Conducted on Manish Mishra and IPS Officer Ravindra Dahyabhai Patel

The Securities and Exchange Board of India (SEBI) has launched a fresh crackdown on individuals allegedly involved in a pump-and-dump stock manipulation scheme, targeting entities associated with Sadhna Broadcast Limited. According to sources, search-and-seizure operations were conducted on key accused Manish Mishra and IPS officer Ravindra Dahyabhai Patel last week.

Mishra, who was previously barred from the securities market in October 2023 for stock price manipulation, is under investigation again for allegedly running a similar stock rigging scheme using YouTube videos and misleading financial advice. Patel, who had previously settled with SEBI in the Sadhna Broadcast case by paying ₹2.6 crore, including ₹1.9 crore as disgorgement, is also under scrutiny in the latest probe.

Multi-City Raids and Investigation into Alleged Stock Manipulation

Sources revealed that SEBI officials conducted operations across multiple locations, including Bengaluru and Delhi, as part of their probe into the suspected manipulation of stock prices. The investigation suggests that Mishra and his associates may have earned illicit gains estimated between ₹20-40 crore through these schemes.

The modus operandi appears to mirror the previously exposed Sadhna Broadcast scam, where false and misleading financial content was uploaded on YouTube channels such as “The Advisor” and “Moneywise”. These videos claimed that certain stocks would rise exponentially, creating artificial demand before operators dumped their shares at inflated prices, leaving retail investors at a loss.

How the Alleged Stock Manipulation Scheme Worked

According to sources, the suspected pump-and-dump strategy involved:

• Uploading misleading YouTube videos that falsely claimed certain stocks would deliver massive returns.

• Targeting retail investors by using paid promotions to amplify viewership and create hype.

• Encouraging stock purchases by setting high and unrealistic price targets, such as predicting a stock priced at ₹100 would surge to ₹1,000.

• Dumping the stock once retail investors had driven up the price, leading to massive profits for the manipulators and sharp losses for investors.

• Removing the videos from YouTube once the stock price was inflated, erasing evidence of the scheme.

This scheme had been previously detailed in SEBI’s October 2023 order, which outlined how YouTube channels with millions of subscribers were used to spread false information, leading to a surge in stock prices before operators sold their holdings for significant profits.

Involvement of IPS Officer Patel and Regulatory Scrutiny

IPS officer Ravindra Dahyabhai Patel was not named in SEBI’s original order on Sadhna Broadcast but was later issued a show-cause notice on January 9, 2024. Following this, Patel applied for a settlement on February 24, 2024, and paid ₹2.6 crore as part of the regulatory settlement on February 19, 2025.

However, less than a month after Patel’s settlement was finalized on February 27, 2025, SEBI raided his residence as part of its renewed crackdown, suggesting his alleged involvement in further stock manipulation activities.

Celebrity Connections and the Broader Market Impact

The Sadhna Broadcast case initially gained media attention due to the involvement of Bollywood actor Arshad Warsi and his wife Maria Goretti Warsi, who were investigated for their alleged participation in the scam. While SEBI has not made any new allegations against them in this latest operation, their previous connection to the case highlighted the influence and reach of the fraudulent scheme.

Market experts warn that such fraudulent activities undermine investor confidence in India’s stock market. With the rise of social media-driven stock market promotions, SEBI is likely to increase its regulatory oversight on financial influencers and unverified investment advice platforms.

SEBI’s Next Steps and the Fight Against Stock Market Manipulation

The recent crackdown signals SEBI’s continued efforts to tighten its grip on market manipulation schemes. The regulator is expected to:

• Strengthen oversight on digital financial advisory content to prevent misleading stock recommendations.

• Enforce stricter penalties on pump-and-dump operators to deter future fraud.

• Increase surveillance on suspicious trading activities and identify potential insider networks.

The market watchdog’s swift action underscores the importance of investor vigilance, urging retail traders to verify stock recommendations from credible sources before making investment decisions.