The Securities and Exchange Board of India (SEBI) has taken a firm stance against unethical practices in the world of investment advice by directing Ravindra Balu Bharti, a prominent financial influencer, to relinquish unlawful gains amounting to over ₹12 crore. SEBI’s stringent action aims to protect investor interests and uphold the integrity of the financial markets.
Ravindra Balu Bharti, known for providing stock market trading training, founded Ravindra Bharti Education Institute Pvt. Ltd. (RBEIPL) in 2016 alongside Shubhangi Bharti, his wife. The organization holds a reputed position for offering educational services related to stock market trading and operates an active website with the domain https://bhartisharemarket.com/. Bharti’s association with RBEIPL as a Director lasted from February 3, 2016, to October 3, 2023. Further extending his reach, Bharti is the son of Balu Motiram, an Authorized Person of stock brokerage firm ABC Limited.
SEBI’s comprehensive probe resulted in an interim order against the unregulated investment advisory RBEIPL, along with its former director Ravindra Balu Bharti, Shubhangi Bharti, and the current directors Rahul Ananta Gosavi, and Dhanashri Chandrakant Gosavi. Following the investigation, SEBI has decreed that the implicated parties must immediately cease offering investment advisory services, desist from presenting themselves as investment advisors, and refrain from any trading in securities pending further directive.
According to the regulatory body’s order, RBEIPL and associated individuals need to impound an exact sum of INR 12,03,82,130.91, identified as the total gains amassed unlawfully from their unauthorized investment advisory operations. The said amount is ordered to be credited to an Escrow Account with an interest-bearing feature, specifically set up at a national bank. This account will then be subject to a lien in favour of SEBI, and no funds will be released without the regulator’s explicit consent.
The influence of Ravindra Bharti in the digital space is not negligible. He owns two YouTube channels named Bharti Share Market Marathi and Bharti Share Market – Hindi, boasting 10.8 lakh and 8.22 lakh subscribers respectively. These platforms have been instrumental in expanding his reach and influence in the market.
In its order, SEBI highlighted the detrimental impact of Bharti’s activities on investor confidence, pointing out how entities like RBEIPL have devised cunning strategies to bypass laws for personal profit, thereby jeopardizing the trust of investors. The promise of guaranteed returns as high as 1000% was a clear exploitation of investor trust in the security markets. Investors lured by the prospect of astronomical returns were mandated to consent to comprehensive terms of service, including fees, expected returns, and profit-sharing arrangements should returns exceed expectations.
The order elaborates on the substantial growth India’s capital market has experienced recently, largely fueled by the public’s increased participation, which hinges on investor confidence. SEBI asserts that sustaining this confidence is critically dependent on investor protection, with transparency and disclosure acting as the fundamental pillars supporting market integrity.
SEBI’s actions underscore its commitment to maintaining a fair marketplace and protecting investors from unscrupulous practices by enforcing consequences against those who attempt to undermine the system for personal advantage. As the investigation continues, the financial community is reminded of the crucial role regulators play in preserving the health and fairness of the financial markets.
