SEBI asks finfluencer to deposit 'unlawful gains' worth over Rs 12 it made through advisory

A financial influencer (finfluencer) who was also involved in imparting training related to stock market trading has been asked to part with a little over Rs 12 crore, which it made unlawfully.

The person, Ravindra Balu Bharti, is directed to credit/deposit the money to an interest bearing Escrow Account created specifically for the purpose in a nationalized bank. The Escrow Account(s) shall create a lien in favour of SEBI and the monies kept therein shall not be released without the permission from SEBI, the regulator said in an order.

Ravindra Bharti Education Institute Pvt. Ltd. (RBEIPL):It is a company founded by Ravindra Balu Bharti in the year 2016, along with his wife, Shubhangi Bharti. The company claims to be primarily involved in imparting training/education related to stock market trading activities. RBEIPL is also having a functional website with the domain name:https://bhartisharemarket.com/.

Ravindra Balu Bharti was a Director of RBEIPL for the period commencing from February 03, 2016 to October 03, 2023. He is son of Balu Motiram, an Authorised Person of stock-broker ABC Limited.

The Securities and Exchange Board of India (SEBI) passed an interim order against an unregistered investment advisory named Ravindra Bharti Education Institute Private Ltd (RBEIPL), its former director Ravindra Balu Bharti and his wife Shubhangi Bharti, and current directors Rahul Ananta Gosavi, and Dhanashri Chandrakant Gosavi.

After an investigation by the market regulator SEBI, it said the noticees shall also cease and desist from offering investment advisory services from acting as or holding themselves out to be investment advisors.

Also, they are restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders.

"An amount of INR 12,03,82,130.91 being the total unlawful gain earned from the alleged unregistered investment advisory business, shall be impounded from Noticee no. 1 (Ravindra Bharti Education Institute Private Limited)," SEBI's order said.

Ravindra Bharti has two YouTube channels named Bharti Share Market Marathi with 10.8 lakh subscribers and Bharti Share Market - Hindi with 8.22 lakh subscribers.

The primary responsibility of a securities market regulator like SEBI is to protect the interest of investors.

The order disclosed "how the investors' confidence has been compromised and how the systems are being abused for personal gains and attainments by entities like Noticee no. 1 by, devising mischievous ways to circumvent the provisions of laws for their personal enrichment but in detriment to the investors.

"Guaranteed returns up to 1000 per cent is a clear case of abuse of investors' confidence in the securities market, the order observed. Investors were lured to take the advisory services by projecting returns in the range of 25 to 1000 per cent.

The investors who opted for such services were required to enter into an agreement, containing detailed terms and conditions of providing investment advisory services; fee to be paid against availing investment advisory services, expected returns on investment made on the advisory, profit sharing percentage in case the returns exceed the expected returns, it said.

"India's capital market in the recent times has witnessed tremendous growth, characterized particularly by increasing participation of 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.