SEBI bans YouTuber Ravinda Balu Bharti for investment scam, slaps ₹9.5 crore fine

The Securities and Exchange Board of India (SEBI) has banned YouTube finfluencer Ravindra Balu Bharti and his company from dealing in or accessing the securities markets until April 4, 2025, and slapped a ₹9.49 crore fine for “unlawful gains,” according to a PTI report.

Bharti and his three associates allegedly ran an unregistered investment advisory business under the name Ravindra Bharti Education Institute.

In addition to Bharti, SEBI named three others, Shubhangi Ravindra Bharti, Rahul Ananta Gosavi and Dhanashri Chandrakant Giri, in the ban.

The SEBI Order

SEBI's final order this month stated that employees of Ravindra Bharti Education Institute lured inexperienced investors with unregistered investment advice and trade recommendations, the report added.

YouTuber Bharti leveraged his social media reach, operating two finfluencer or financial influencer channels with 10.8 lakh and 8.33 lakh subscribers, respectively, to promote the business. 

According to the regulator's review, the channels were allegedly used to influence the sale of multiple plans to the same clients, limit their input in trade decisions, fail to fully inform them about the risks, and provide incomplete financial disclosures in agreements, violating fiduciary duties and IA Regulations.

The Consequences

Based on the review, SEBI has directed Bharti and his company “to disgorge an amount of ₹9.49 crore on a joint and several basis, along with simple interest at the rate of 6 per cent.”

The financial influencer, his company and three associates are also barred from “accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner, whatsoever, till April 4, 2025.”

Additionally, they must stop offering investment advisory services or acting as investment advisors, including under the names “Ravindra Bharti Education Institute Private Limited” or “Ravindra Bharti Wealth,” unless registered with SEBI.

SEBI has levied a ₹10 lakh penalty on the five entities and another ₹5 lakh on Ravindra Bharti Education Institute, Rahul Ananta Gosavi and Dhanashri Chandrakant Giri for the regulatory violations, it said.

(With inputs from PTI)