SEBI directs finfluencer to deposit Rs 12 crore 'unlawful gains'
Mumbai, Apr 7, 2024
Synopsis
Ravindra Balu Bharti, a YouTuber and financial influencer, was running a firm called Ravindra Bharti Education Institute Pvt. Ltd. (RBEIPL), founded in 2016 by him and his wife. The company was primarily involved in imparting training related to stock market trading activities. He runs two YouTube channels — Bharti Share Market -Marathi, which has around 10.8 lakh subscribers and Bharti Share Market - Hindi, with 8.33 lakh subscribers.
The Securities and Exchange Board of India (Sebi) has directed Ravindra Balu Bharti, a YouTuber and financial influencer, to deposit Rs 12 crore of ‘unlawful gains’ in an interest bearing escrow account overseen by the regulator.
It has directed Bharti and his wife Shubhangi to cease and desist from offering investment advisory services and has also banned them from the securities market.
Bharti was running a firm called Ravindra Bharti Education Institute Pvt. Ltd. (RBEIPL), founded in 2016 by him and his wife. The company was primarily involved in imparting training related to stock market trading activities. He runs two YouTube channels — Bharti Share Market -Marathi, which has around 10.8 lakh subscribers and Bharti Share Market - Hindi, with 8.33 lakh subscribers.
The regulator alleged that Bharti and his firm engaged in offering investment advisory in lieu of monetary consideration. Investors were lured to take the advisory services by projecting returns in the range of 25% to 1000%, Sebi said in an order.
The investors who opt for such services would enter into an agreement with the firm, containing terms and conditions of providing investment advisory services and fee to be paid against availing investment advisory services, expected returns on investment made on the advisory of the firm, profit sharing percentage in case the returns exceed the expected returns, the regulator said.
Sebi said Bharti and his firm imparted advice relating to investing in securities in lieu of consideration, which prima facie was found to be in the nature of providing investment advice.
The regulator said the number of subscribers of the YouTube channels of Bharti are increasing further and there is a likely chance that gullible investors may continue to fall prey to his unregistered investment advisory activities.
“The violations that have been observed are not some small technical violations, but are of such a nature that they go to the roots of the need for having a regulatory framework for investment advisors,” Sebi said.
[The Economic Times]
