MUMBAI: Sadhna Broadcast Ltd a company allegedly embroiled in a significant market manipulation scandal, is seeking permission to rebrand itself as Crystal Business System Ltd following regulatory action from India's Securities & Exchange Board (Sebi).
The company's board recently approved the name change after receiving preliminary clearance from the registrar of companies in Delhi. The proposal now awaits shareholder approval and final regulatory permissions before taking effect.
The rebranding effort comes in the wake of a major securities fraud case that saw SEBI bar 31 entities connected to Sadhna Broadcast, including Hindi film actor Arshad Warsi, his wife Maria Goretti, and several company promoters from trading in the securities market.
Sebi’s investigation revealed a sophisticated scheme involving misleading YouTube videos that falsely claimed the company would be acquired by the Adani Group and had secured a Rs 1,100 crore contract with an American corporation. These fabricated claims triggered a buying frenzy among retail investors, with the company's shareholder base ballooning from 2,167 to over 55,000.
While small investors purchased shares at inflated prices, company insiders and accomplices allegedly offloaded their holdings for substantial profits. Sebi impounded illegal gains totalling Rs 41.85 crore made by various entities involved in the scheme.
As recently as February 2025, one participant in the scheme, Ravindra Dahyabhai Patel, settled with SEBI by paying Rs 72.8 lakh as a settlement amount and disgorging Rs 1.9 crore in ill-gotten gains. He also accepted a six-month voluntary debarment from the securities market.
The board resolution for the name change makes no mention of the scandal or regulatory actions, presenting the rebranding as a routine corporate matter requiring amendments to the company's memorandum and articles of association.
The company continues to be listed on the Bombay Stock Exchange (BSE) and Metropolitan Stock Exchange of India (MSEI), though the proposed name change will require additional approvals from these exchanges before implementation.
