India’s securities market regulator Securities and Exchange Board of India (SEBI) has taken action against YouTuber Ravindra Balu Bharti and his company, Ravindra Bharti Education Institute, for operating an unregistered investment advisory business. The regulator has barred them from participating in the securities market until April 4, 2025, and ordered them to return Rs 9.5 crore, the amount they earned through illegal activities.
YouTuber banned for Illegal Stock Market Activities
SEBI’s investigation found that Bharti and his company lured inexperienced investors into the stock market with unregistered investment advice, trade recommendations, and execution services. Bharti, with a significant online following of 19 lakh subscribers across two YouTube channels, leveraged his influence to promote risky investments to his followers.
The company marketed “high returns” while failing to disclose the associated risks and operating without the necessary SEBI registration. They employed manipulative tactics, such as selling multiple investment plans to individual investors, limiting their decision-making autonomy.
SEBI’s order emphasizes that Bharti’s company violated securities laws and failed to fulfill its fiduciary duty to prioritize clients’ best interests.
What are the penalties and restrictions imposed
In addition to the financial penalties and repayment order, SEBI has imposed a ban on Bharti, his company, and several associates from engaging in any securities market activity until April 2025. They are also prohibited from offering investment advisory services without proper SEBI registration. Further penalties of Rs 10 lakh have been levied on Bharti and his associates.
This action by SEBI serves as a strong deterrent against individuals and entities operating in the securities market without proper authorization and engaging in fraudulent activities.
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