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Business News/ Markets / SEBI directs finfluencer to pay over 12 crore for unlawful gains after false claims of 1000% returns
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SEBI directs finfluencer to pay over ₹12 crore for unlawful gains after false claims of 1000% returns

Finfluencer Ravindra Bharti has been instructed to transfer ₹12 crore to an interest-bearing Escrow Account in a nationalised bank to hold the funds for SEBI. The authority noted that claiming guaranteed returns up to 1000 percent is a clear case of abuse of investors' confidence.

After an investigation, SEBI said the parties would have to 'cease and desist from offering investment advisory services and acting as or holding themselves out to be investment advisors'. Also, Premium
After an investigation, SEBI said the parties would have to 'cease and desist from offering investment advisory services and acting as or holding themselves out to be investment advisors'. Also,

The Securities and Exchange Board of India (SEBI) has issued an order directing a financial influencer, or more popularly known as a finfluencer involved in stock market training to repay a sum exceeding 12 crore, earned unlawfully, as per an ANI report.

The finfluencer in question — Ravindra Balu Bharti, has been instructed to transfer the funds to an interest-bearing Escrow Account established specifically for this purpose in a nationalised bank. SEBI's order states that the Escrow Account will hold the funds under a lien in favour of SEBI, and they cannot be released without SEBI's permission.

"Guaranteed returns up to 1000 percent is a clear case of abuse of investors' confidence in the securities market," the order stated, adding that investors were lured to take advisory services by the “false promise" of 25 to 1000 percent returns.

Who is Ravindra Bharti?

Bharti and his wife Shubhangi Bharti founded Ravindra Bharti Education Institute (RBEIPL) in 2016. The unregistered investment advisory's main activities revolve around providing education and training related to stock market trading. 

Bharti operates two YouTube channels, "Bharti Share Market Marathi" with 10.8 lakh subscribers and "Bharti Share Market - Hindi" with 8.22 lakh subscribers.

SEBI's order highlights the abuse of investors' confidence through promises of guaranteed returns of up to 1000 percent, luring investors into taking advisory services with projected returns ranging from 25 to 1000 percent.

Bharti served as a Director of RBEIPL from February 03, 2016, to October 03, 2023. He is the son of Balu Motiram, an Authorized Person of stockbroker ABC Limited.

What Action Has SEBI Taken?

The markets regulator has issued an interim order against RBEIPL, its former director Ravindra Bharti, his wife Shubhangi, and current directors Rahul Ananta Gosavi and Dhanashri Chandrakant Gosavi.

These parties have been instructed to "cease and desist" offering investment advisory services and refrain from engaging in any securities transactions until further notice.

SEBI's order mandates the impoundment of 12,03,82,130.91 ( 12.03 crore), the total unlawful gain allegedly earned through the unregistered investment advisory business conducted by Ravindra Bharti Education Institute.

SEBI emphasised its role in safeguarding investors' interests, noting the importance of disclosure and transparency in maintaining market integrity. It also stated a need to protect investors amid growing general public participation in India's capital market.

"India's capital market in recent times has witnessed tremendous growth, characterised 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," the order copy read.

(With inputs from ANI)

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Published: 07 Apr 2024, 02:50 PM IST
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