SEBI bans YouTube stock market influencer with 19 lakh subscribers; slaps Rs 9.5 cr penalty
Mumbai: India's stock market regulator Securities and Exchange Board of India (SEBI), has taken action against YouTuber Ravindra Balu Bharti and his firm, Ravindra Bharti Education Institute, for running an unregistered investment advisory business, media reports said.
SEBI has barred him from participating in the securities market until April 4, 2025, and directed them to refund Rs 9.5 crore earned through illegal activities, according to a Times of India report.
SEBI's investigation revealed that Bharti and his company misled inexperienced investors with unregistered investment advice, trade recommendations, and execution services.
Bharti, who has a substantial online presence with 19 lakh subscribers across two YouTube channels, used his influence to encourage followers to undertake high-risk investments.
The firm promoted "high returns" without disclosing associated risks and operated without SEBI registration. It also employed manipulative tactics, such as selling multiple investment plans to the same investor, thereby restricting their decision-making capabilities.
SEBI highlighted in its order that Bharti’s company breached securities laws and neglected its fiduciary responsibility to act in the best interests of its clients.
Along with ordering the return of Rs 9.5 crore, SEBI has prohibited Bharti, his firm, and their associates from participating in securities market activities until April 2025.
They are also banned from offering investment advisory services without proper SEBI registration. Additionally, SEBI has imposed a Rs 10 lakh penalty on Bharti and his associates.
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