The Securities and Exchange Board of India (SEBI) has issued an order directing a financial influencer, Ravindra Balu Bharti engaged in stock market training, to reimburse an amount exceeding ₹12 crore, earned through illegal means. This action aims to protect investor’s interests and maintain market integrity amidst mounting concerns regarding fraudulent activities in the securities market.
Bharti has been mandated to transfer the funds to an interest-bearing Escrow Account, established explicitly for this purpose in a nationalized bank. According to SEBI’s directive, the Escrow Account will secure the funds under a lien in favour of SEBI, with provisions preventing their release without SEBI’s explicit consent.
The order explicitly states that the promise of guaranteed returns of up to 1000% constitutes an exploitation of investors’ trust in the securities market. It further notes that investors were enticed into availing advisory services through false assurances of returns ranging from 25% to 1000%.
Who is Ravindra Balu Bharti?
Ravindra Balu Bharti, a prominent finfluencer boasting a following of over 2 million. He operates two YouTube channels viz., ‘Bharti Share Market – Marathi,’ with 1.08 million subscribers, and ‘Bharti Share Market – Hindi,’ with 822,000 subscribers. He is the son of Balu Motiram, an Authorized Person of stockbroker ABC Limited. Alongside his wife, Shubhangi Bharti, he established the Ravindra Bharti Education Institute (RBEIPL) in 2016. RBEIPL is unregistered as an investment advisory. It primarily focuses on providing education and training related to stock market trading. Bharti served as a Director of RBEIPL from February 3, 2016, to October 3, 2023.
SEBI’s recent order emphasizes the exploitation of investor trust through the promise of guaranteed returns reaching up to 1000%. This enticed investors into availing advisory services, with projected returns spanning from 25% to 1000%.
Action taken by SEBI
SEBI, acting as the market regulator, has issued an interim order against RBEIPL, its former director Bharti, his wife Shubhangi, and current directors Rahul Ananta Gosavi and Dhanashri Chandrakant Gosavi. These entities have been directed to “cease and desist” from offering investment advisory services and participating in securities transactions until further notice.
The order requires the impoundment of ₹12,03,82,130.91 (₹12.03 crore), representing the alleged total unlawful profits derived from the unregistered investment advisory activities conducted by Ravindra Bharti Education Institute (RBEIPL).
SEBI emphasise its commitment to safeguarding investors’ interests, highlighting the significance of disclosure and transparency in upholding market integrity. The regulator also underscores the necessity to protect investors amidst the increasing participation of the general public in India’s capital market.
According to the order copy, “India’s capital market in recent times has witnessed tremendous growth, characterized particularly by increasing participation of the common public based on investors’ confidence. This confidence in the capital market can be sustained largely by ensuring investors’ protection. Disclosure and transparency are the two pillars on which market integrity rests.”
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