SEBI Takes Action Against YouTuber, Imposes ₹9.5 Crore Fine and Market Ban
SEBI Takes Action Against YouTuber, Imposes ₹9.5 Crore Fine and Market Ban
SEBI’s directive emphasized that Bharti’s firm violated securities regulations and failed to uphold its fiduciary duty to prioritize the best interests of its clients.
India’s securities market regulator, the Securities and Exchange Board of India (SEBI), has implemented strong measures against YouTuber Ravindra Balu Bharti and his organization, Ravindra Bharti Education Institute, for operating an unregistered investment advisory service.
The investigation conducted by SEBI revealed that Bharti and his firm attracted novice investors to the stock market by providing unregistered investment guidance, trade suggestions, and execution services.
With a substantial online presence of 1.9 million subscribers across two YouTube channels, Bharti utilized his influence to advocate for high-risk investments to his audience.
SEBI has barred them from participating in the securities market until April 4, 2025, and has instructed them to return ₹9.5 crore, which was generated from their unauthorized operations.
SEBI has not only imposed financial penalties and a repayment order but has also placed a ban on Bharti, his company, and several associates from participating in any activities related to the securities market until April 2025.
The company promoted “high returns” without adequately revealing the associated risks and operated without the required SEBI registration. They utilized deceptive strategies, including offering multiple investment plans to individual investors, which restricted their ability to make informed decisions.
Additionally, they are barred from providing investment advisory services without the necessary SEBI registration. Bharti and his associates have also been subjected to further penalties amounting to Rs 10 lakh.
Earlier this year, SEBI implemented more stringent regulations aimed at financial influencers, commonly referred to as ‘finfluencers’, to protect investors. The authority has prohibited brokers, mutual funds, and other regulated entities from collaborating with unregistered financial influencers for marketing or promotional activities. This ban extends to any financial transactions or client referrals that involve these influencers.
