SEBI Investigates Suspected Pump-and-Dump Scheme Involving Manish Mishra

Inside SEBI’s Crackdown on the Sadhna Broadcast Scam: The Manish Mishra Operation Unfolds

India’s capital markets regulator is in no mood to look the other way when it comes to stock manipulation—and its latest action in the Sadhna Broadcast case proves just that. In a series of aggressive search-and-seizure operations, SEBI has gone after Manish Mishra and his network, unearthing what appears to be a textbook case of a pump-and-dump scheme designed to mislead retail investors and rake in illicit profits.

At the heart of it is a pattern that’s become all too familiar in the age of social media hype: flashy stock tips, misleading YouTube videos, and a carefully timed exit—leaving everyday investors to clean up the mess.

What’s the Story Behind the Mishra Probe?

This isn’t Mishra’s first run-in with SEBI. He had already been barred from the securities market in connection with earlier manipulative trades involving Sadhna Broadcast shares. But SEBI’s latest actions suggest that the regulator is widening the net—and digging deeper into the network that enabled the scheme.

The recent raids are part of an ongoing investigation into how certain individuals orchestrated artificial price inflation in Sadhna Broadcast stock, only to dump their holdings at a profit once the buzz peaked.

A Case That Reached the Headlines—for More Reasons Than One

What drew national attention to this case wasn’t just the scale of the alleged fraud—it was the involvement of familiar names. Actor Arshad Warsi and his wife Maria Goretti were among those who came under SEBI’s scanner for suspicious trading activity in Sadhna Broadcast. While no formal charges were filed against them, their connection to the trades made headlines and amplified the case’s public profile.

Meanwhile, a more shadowy figure in the scheme, IPS officer Ravindra Dahyabhai Patel, is also facing the heat. Patel’s name came up again as SEBI conducted fresh raids, including at his premises. Earlier this year, he had quietly settled charges with SEBI—agreeing to pay over ₹2.6 crore, which included ₹1.9 crore in disgorgement. He also accepted a six-month voluntary ban from participating in the securities market, effective February 2025.

The Modus Operandi: A Digital Deception

If you’re wondering how this fraud played out, the answer lies not in shady backroom deals—but in plain sight, on YouTube.

Mishra and his associates allegedly created and circulated glowing, but grossly misleading videos about certain stocks—Sadhna Broadcast being a primary target. These clips were uploaded to widely followed channels like “The Advisor” and “Moneywise,” both of which had large subscriber bases and view counts that ran into the millions, often fuelled by paid promotions.

The content was designed to lure unsuspecting investors—bold claims about a ₹100 stock soaring to ₹1,000, fake news dressed up as expert insights, and pie-in-the-sky target prices. The goal was simple: create artificial demand.

Once the stock’s price started climbing on the back of this digital frenzy, the operators began unloading their holdings at inflated prices. And just as quickly as the videos had gone up, they vanished—erasing the trail of false promises before regulators or investors could catch on.

SEBI’s forensic trail has since uncovered coordinated trading patterns, with entities connected to Mishra responsible for substantial volumes. The timeline reveals a calculated cycle: accumulate shares at low prices, release manipulated content, watch retail interest push the price higher, and exit quietly at the top.

The Scale of the Operation—and the Fallout

SEBI’s latest raids have spanned across cities—including Delhi and Bengaluru—and the regulator has reportedly recovered material evidence pointing to significant gains from these activities. Current estimates suggest that the profits raked in by this network could range between ₹20 crore and ₹40 crore.

While Patel wasn’t named in SEBI’s original order, he was issued a show cause notice in January 2024 and applied for settlement a month later. His settlement was approved in early 2025, along with his voluntary debarment from trading.

The regulator has made it clear that the case is still unfolding, with more names possibly emerging as investigations continue.

What This Means for the Broader Market

This episode underscores several uncomfortable truths about today’s market environment:

1. Digital Misinformation Is Now a Serious Threat

Retail investors are increasingly turning to YouTube and social media for advice—but not everything online is trustworthy. This case is a cautionary tale in how influencer-style hype can be weaponised for personal gain.

2. Regulators Are Watching—Closely

SEBI’s actions signal that it is not just looking at the tip of the iceberg. From media personalities to public servants, no one is being spared scrutiny if there’s evidence of foul play. The use of search-and-seizure powers—still rare in capital market probes—shows how seriously the watchdog is taking such cases.

3. Retail Trust Must Be Rebuilt

Pump-and-dump schemes don’t just hurt individual investors—they erode confidence in the fairness of the market. For India’s growing base of first-time investors, visible enforcement like this sends a reassuring message: you will be protected.

4. Associates Are Not Off the Hook

This case also makes it clear that indirect involvement—whether through insider networks or facilitation—is no longer easy to brush under the carpet. Settlement or not, reputational damage and future restrictions remain real.

The Bigger Picture

At its core, this is about market integrity. SEBI’s continued pursuit of bad actors in the Sadhna Broadcast case is not just about one company or a few shady videos—it’s about drawing a clear line in the sand. And as more young investors enter the market through digital platforms, that line becomes even more important