SEBI Bars Ravindra Bharti Over Unregistered Investment Advisory

Ravindra Balu Bharti, a prominent YouTuber, and his company, Ravindra Bharti Education Institute, have been barred by the Securities and Exchange Board of India (SEBI) from participating in the securities market until April 4, 2025. SEBI has imposed this restriction due to their involvement in an unregistered investment advisory business that misled and exploited inexperienced investors.

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SEBI's Findings and Actions

According to SEBI, Bharti and his institute violated securities laws by providing unauthorized investment advice, trade recommendations, and execution services. These actions were used to entice novice investors to engage in the securities market under false promises of high returns. The regulatory body discovered that the institute earned ₹9.5 crore through these unlawful activities, which Bharti and his company are now required to repay, along with penalties and interest charges. Additionally, SEBI has imposed an extra ₹10 lakh fine on Bharti and his associates.

How Investors Were Deceived

Bharti, with his two popular YouTube channels boasting a combined 1.9 million subscribers, leveraged his influencer status to gain the trust of his audience. He used this platform to promote risky investment schemes under the guise of offering lucrative returns. Bharti’s company reportedly provided misleading and inconsistent advice while selling multiple investment plans to individual investors. The advice lacked transparency regarding potential risks, and no proper financial disclosures were made, leaving investors vulnerable to significant losses. Many clients became overly reliant on Bharti’s guidance, unable to make independent financial decisions.

SEBI’s Observations

SEBI noted that Bharti and his institute employed unethical tactics to attract clients, marketing their services as "expert advice" to those seeking quick profits. However, their operations violated fiduciary responsibilities, which require prioritizing clients’ best interests. SEBI has barred Bharti and his company from offering any investment advice until they obtain proper registration with the regulatory authority.

This case serves as a stark reminder of the importance of regulatory compliance and the need for investors to exercise caution when seeking financial guidance from unverified sources.