SEBI bans YouTube influencer, imposes ₹9.5cr fine for misleading investors
The Securities and Exchange Board of India (SEBI) has banned YouTuber Ravindra Balu Bharti and his firm from participating in the securities markets till April 4, 2025. The regulator has also imposed a hefty ₹9.49 crore fine on them for "unlawful gains," according to PTI. The charges are based on allegations that Bharti and three associates ran an unregistered investment advisory business under the name Ravindra Bharti Education Institute.
SEBI names 3 associates in investment scam
Along with Bharti, SEBI has also named three others in the ban: Shubhangi Ravindra Bharti, Rahul Ananta Gosavi, and Dhanashri Chandrakant Giri. They are alleged to have been involved in the unregistered investment advisory business. The regulator's final order this month revealed that employees of Ravindra Bharti Education Institute lured novice investors with unregistered investment advice and trade recommendations.
Bharti used YouTube channels to promote business
Bharti, a popular financial influencer on YouTube, leveraged his two channels (10.8 lakh and 8.33 lakh subscribers) to promote his business. SEBI's investigation revealed that these platforms were allegedly used to manipulate the sale of multiple plans to the same clients and restrict their involvement in trade decisions. The regulator also found that clients weren't fully informed about potential risks and incomplete financial disclosures in agreements.
SEBI orders Bharti to disgorge ₹9.49 crore
SEBI has ordered 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%." The financial influencer, his company, and three associates are also prohibited 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."
Additional penalties for regulatory violations
Apart from the disgorgement order, SEBI has also slapped a ₹10 lakh penalty on the five entities and another ₹5 lakh fine on Ravindra Bharti Education Institute, Ananta Gosavi, and Chandrakant Giri for regulatory violations. They have been directed to stop offering investment advisory services or acting as investment advisors under any name unless registered with SEBI. This includes operating under names like "Ravindra Bharti Education Institute Private Limited" or "Ravindra Bharti Wealth."
