The Securities and Exchange Board of India (SEBI) has banned YouTube finfluencer Ravindra Balu Bharti and his company from dealing in or accessing the securities markets till April 4, 2025 and slapped a ₹9.49 crore fine on them for “unlawful gains.”
Bharti and his three associates earned from an allegedly unregistered investment advisory business. The company is called Ravindra Bharti Education Institute.
Besides Bharti, three others — Shubhangi Ravindra Bharti, Rahul Ananta Gosavi and Dhanashri Chandrakant Giri-- were named by SEBI in the ban.
The markets regulator in its final order this month said the Ravindra Bharti Education Institute's employees had lured inexperienced investors using unregistered investment advice and trade recommendations.
The company marketed itself using Bharti's social media reach on YouTube, where he has two finfluencer or financial influencer channels with 10.8 lakh and 8.33 lakh subscribers, respectively. The channels allegedly were used to sell multiple plans to the same client and limited their input in trade decisions. They were also not fully informed about the risks, or received incomplete financial disclosures in agreements, which violates fiduciary duties and IA Regulations, according to the regulator's review
Based on the review, SEBI has directed Bharti and his company “to disgorge an amount of ₹9.49 crore on a joint and several basis, along with simple interest at the rate of 6 percent”.
Also, the finfluencer, his company and three associates are barred from “accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner, whatsoever, till April 4, 2025”.
They must stop offering investment advisory services or acting as investment advisors, including under the names “Ravindra Bharti Education Institute Private Limited” or “Ravindra Bharti Wealth”, unless registered with SEBI.
The regulator has also levied a ₹10 lakh penalty on the five entities and another ₹5 lakh on Ravindra Bharti Education Institute, Rahul Ananta Gosavi and Dhanashri Chandrakant Giri for the regulatory violations.
(By arrangement with livemint.com)