Securities and Exchange Board of India (SEBI) has taken a tough step against famous Youtuber Ravindra Balu Bharti and his company, Ravindra Bharti Education Institute, for running an unregistered investment advisory business. This YouTuber has 19 Lakh subscribers across 2 channels.
Let’s understand this story in detail. Who is this YouTuber? Why did SEBI ban this person and his associates, and what would he have to do for his illegal activities? Everything is in this article. Let’s go!
Who is this YouTuber and why SEBI bans this famous YouTuber?
This famous YouTuber is Ravindra Balu Bharti, who has more than 4 YouTube channels, across these channels he has followers more than 34 lakh. His channel has the most subscribers, almost 15.5 Lakh, and provides content related to entrepreneurship, social skills, and various tips and tricks for life.
His other two channels, one Hindi and one Marathi channel, provide tips and tricks related share market, and across these two channels has a subscriber base of more than 19 lakh. He owns a company, Ravindra Bharti Education Institute, which is dedicated to providing financial literacy to the masses and is focused on imparting necessary skills and confidence to their students.
The statutory regulatory organization Securities and Exchange Board of India (SEBI) has taken action against famous YouTuber Ravindra Bharti, his associates, and his company, Ravindra Bharti Education Institute, because of operating an unregistered financial advisory business. According to a PTI report, SEBI banned the YouTuber influencer and his firm from participating securities market until April 2024.
The board also fined Rs 9.5 crore, the money earned through their ‘unlawful’ activities. Regulatory also named three other associates, Shubhangi Ravindra Bharti, Rahul Ananta Gosavi, and Dhanashri Chandrakant Giri, in this interruption.
According to SEBI’s investigation, Bharti and his firm gave unregistered investment advice and trade recommendations to inexperienced investors. Bharti leveraged his YouTube channel follower base to target these individuals to promote the business.
The channels’ followers were systematically used to influence sales of multiple plans to the same clients, limiting their input in the investment decisions, where they failed to inform the risks and failed to provide incomplete financial disclosures in agreements, violating fiduciary duties and IA regulations, the regulator report said.
Based on this review, SEBI has charged a financial penalities of Rs 9.5 crore along with 6 per cent interest rate, and has imposed a ban on Bharti, his company and his associates from engaging in any market securities activity until April 2025.
They are also restricted from offering investment advisory services or acting as investment advisors, including under the name of “Ravindra Bharti Education Institute Private Limited” or “Ravindra Bharti Wealth”, without proper SEBI registration.
Additionally the penalty of Rs 10 lakh have been leveid from Ravinda Bharti and his associates and another Rs 5 Lakh on Ravindra Bharti Education Intitute, Rahul Ananta Gosavi and Dhanashri Chandrakant Giri for the regulatory violation, it said.
This action of SEBI led a strong safety against individuals operating in securities marketing without proper authorisation from SEBI and engaging fraudulent activities.
Read This Also: IGI Share Price; Siemens Shares Fall 9%; Sagility Shares Up 54% From Its IPO; Mamata Machinery IPO GMP Day 2 And More.
