SEBI Cracks Down on Unregistered Investment Advisory by YouTuber Ravindra Bharti

India’s market regulator, the Securities and Exchange Board of India (SEBI), has taken strict action against YouTuber Ravindra Balu Bharti and his company, Ravindra Bharti Education Institute, for running an unregistered investment advisory service.

What Did They Do?

SEBI’s investigation revealed that Bharti and his firm misled beginner investors by offering unauthorized investment advice, trading tips, and services to execute trades. With over 1.9 million subscribers across two YouTube channels, Bharti used his influence to promote risky investments, often promising high returns without fully explaining the risks involved.

The company also offered various investment plans that confused investors and limited their ability to make informed choices. Importantly, Bharti’s firm operated without the necessary SEBI registration, violating securities regulations and failing to prioritize their clients’ best interests.

SEBI’s Actions

• Market Ban: Bharti, his company, and associates are banned from participating in the securities market until April 4, 2025.
• Repayment Order: They must return ₹9.5 crore earned through these unauthorized activities.
• Financial Penalties: Bharti and his associates face additional penalties totaling ₹10 lakh.
• Advisory Ban: They are prohibited from offering investment advisory services without proper SEBI registration.

Broader Impact

Earlier this year, SEBI introduced stricter rules to safeguard investors from financial influencers, or “finfluencers.” These regulations prohibit brokers, mutual funds, and other regulated entities from collaborating with unregistered influencers for promotions, client referrals, or any financial transactions.

SEBI’s actions emphasize the importance of proper registration and transparency in financial services to protect investors from deceptive practices.