The Securities and Exchange Board of India (SEBI) has barred YouTuber Ravindra Balu Bharti and his company, Ravindra Bharti Education Institute Pvt Ltd, from accessing the securities market until 4 April 2025. SEBI has also ordered them to disgorge ₹9.50 crore, along with 6% simple annual interest, for unlawful gains earned from an unregistered investment advisory business.

Additionally, Mr. Bharti's associates—Shubhangi Ravindra Bharti, Rahul Ananta Gosavi, and Dhanashri Chandrakant Giri—have also been prohibited from dealing in the securities market until 4 April 2025.

SEBI Findings and Actions

An investigation revealed that Ravindra Bharti Education Institute, operating since 2016, offered stock market courses and wealth management programs, attracting clients with promises of high returns. The company charged steep advisory fees while marketing services like tax optimization, retirement planning, and risk management. However, it engaged in activities typical of an investment adviser without proper SEBI registration.

Key findings from SEBI’s investigation include:

• The company earned ₹12.03 crore from 290 investors between March 2020 and August 2023.
• Clients were misled with unrealistic return projections, some as high as 1000% over 10 years.
• Advisory fees were aggressively charged, with multiple invoices often issued on the same day.
• Clients were required to allocate 100% of their funds to equity investments, disregarding individual financial goals or risk tolerance.
• Employees of the Institute executed trades on behalf of clients without full knowledge or informed consent.

SEBI found that the company’s practices extended beyond educational services, with specific stock recommendations and trade executions being conducted under the guise of wealth management programs. These activities were in violation of the SEBI Act.

Penalties Imposed

SEBI has imposed the following penalties:

• A fine of ₹15 lakh on all five entities, payable jointly and severally.
• An additional ₹5 lakh penalty on Ravindra Bharti Education Institute, Rahul Ananta Gosavi, and Dhanashri Chandrakant Giri for regulatory violations.

Directive to Cease Activities

SEBI has directed the entities to cease offering investment advisory services or acting as investment advisers unless duly registered. This includes operations under the names Ravindra Bharti Education Institute and Ravindra Bharti Wealth.

Misleading Practices Unveiled

Ravindra Bharti Education Institute marketed itself using the credentials of Ravindra Balu Bharti, who runs two YouTube channels with substantial followings. The company promoted multiple investment plans to the same clients, limiting client input and making decisions solely for its own financial benefit. SEBI’s investigation highlighted dubious financial dealings, including trades executed without proper client consent.

SEBI’s actions emphasize its commitment to protecting investors from fraudulent and unregistered advisory practices. The regulator’s strict penalties and market bans aim to deter similar violations and ensure adherence to regulatory frameworks in the securities market.