'Finfluencer who promised moon': SEBI bans YouTuber Ravindra Bharti, fines ₹9.5 cr

In yet another crackdown on influencers, the Securities and Exchange Board of India (SEBI) has barred a YouTuber, Ravindra Balu Bharti, and his company, Ravindra Bharti Education Institute Ltd (RBEIPL), for operating as an unregistered investment advisory business.

They, along with three other individuals -- Shubhangi Ravindra Bharti, Rahul Ananta Gosavi, and Dhanashri Chandrakant Shri -- have also been banned from participating in the securities market until April 4, 2025. The regulator has also fined them Rs 9.5 crore for violations of the SEBI rules.

"Noticees 1 (RBEIPL) and 2 (Ravindra Balu Bharti, are directed to disgorge an amount of INR 9,49,24,122.12 on joint and several bases, along with simple interest at the rate of 6% leviable from the date of the Interim Order till the date of actual payment," a SEBI order said.

SEBI's inspection found that Bharti and his company engaged in illegal practices of luring inexperienced investors into the stock market. They offered unregistered investment advice and recommended stocks.

SEBI says the person controlling RBEIPL was Ravindra Balu Bharti, a financial influencer (“finfluencer”) running two YouTube channels with 10.8 lakh and 8.33 lakh subscribers, respectively. RBEIPL/Bharti Share Market’s website describes him as “Prof. Ravindra Bharti Sir”, founder and CMD of Bharti Business Group, an engineering graduate, visionary and respected finfluencer, who claims to have authored 12 stock market books.

"The above facts and findings have brought to light the remarkable case of a finfluencer with extensive public reach, who has thoroughly exploited his popularity to further his businesses, in complete disregard of applicable laws. Noticee 2, the finfluencer, is also the CMD of Bharti Group, which comprises diverse commercial interests. Instead of seeking registration as a regulated intermediary, Noticee 1 tried to hide its investor advisory business under the garb of a financial educational institute which was supposed to espouse investor interest," the SEBI order said.

The regulator says far from investor interest, his company's unregistered investment advisory business involved evasion of all regulatory safeguards in the investment advistory (IA) regulations framework. Most notably, SEBI says all this was done by Bharti without breathing a whiff about the obvious conflict of interest and business with related parties to its clients.

SEBI says the finfluencer promised its clients the moon in terms of profits. "Once the clients signed off their interests in one-sided wealth management agreements with RBEIPL, it nudged them towards multiple investment plans, which ensured ample funds of investors at its disposal to manage at its discretion. The constant trading also ensured a steady stream of clients for Ravindra Bharti’s father’s business as AP of a stockbroker."

SEBI says the noticees set up a "money-making arrangement", whose sole purpose and intent was to ensure steady income and fees for RBEIPL as well as the AP (authorised persons) related to it. "“Wealth management plans” with unreasonably high returns were actively marketed to the public. However, the wealth management agreements contained outrageous mandatory clauses which exposed clients to unreasonable risk."

The SEBI probe also found the noticees have not deposited Rs 12,03,82,130.91 (over Rs 12 crore) directed to be impounded in the interim order issued in April this year. "Accordingly, in the facts and circumstances of the case, I find that a penalty of INR 10 lakh and of INR 5 lakh payable jointly and severally by Noticees 1, 2, 3, 4 and 5 would be appropriate. Further, I find that a penalty of INR 5 lakh payable jointly and severally by Noticees 1, 4 and 5 will be commensurate with the violation committed by them."

SEBI tightens noose around violators 

Earlier this month, SEBI issued a final order against seven entities, including Baap of Chart (BOC), a once-popular social media page in the trading community. The regulator convicted seven entities, associated with the channel, of perpetrating a ₹17.2 crore fraud.

It imposed a total penalty of ₹32 lakh on the noticees, while the BOC founder MN Ansari was fined ₹20 lakh. In its consultation paper in September 2024, the Securities Exchange Board of India (SEBI) sought to ban any SEBI-registered intermediary or regulated entity, including their agents and representatives, from dealing with any unregistered finfluencer to promote their products or services.