The Securities and Exchange Board of India (SEBI) has taken strong action against YouTube financial influencer Ravindra Balu Bharti and his associates for running fraudulent investment schemes. SEBI has imposed a ban on Bharti and his company, Ravindra Bharti Education Institute, preventing them from accessing the securities market until April 4, 2025. Along with this, a penalty of ₹9.49 crore has been imposed for operating an unregistered investment advisory business.
Ravindra Balu Bharti, known for his two popular YouTube channels, used his significant online following to promote unregistered investment advice. His channels, with a combined subscriber base of over 19 lakh, attracted many investors by promising high returns on various investment plans. However, the schemes were found to be fraudulent, lacking any real underlying assets or legitimate business operations. Bharti and his associates misled inexperienced investors by selling multiple investment plans to the same clients and failing to fully disclose the risks involved.
After receiving several complaints from investors, SEBI launched an investigation into Bharti’s activities. The investigation revealed that Bharti and his team violated multiple regulations, including the Investment Advisory (IA) Regulations. It was found that they were providing investment advice without SEBI registration and misguiding investors about the risks. The team also failed to provide full financial disclosures in the investment agreements, limiting the investors’ ability to make informed decisions.
SEBI’s probe showed that Bharti and his associates operated without the necessary licenses and misrepresented themselves as legitimate financial advisors, which led to unlawful profits.
In response to the violations, SEBI has ordered Bharti and his company to disgorge ₹9.49 crore. They are also prohibited from engaging in any securities market activities until April 4, 2025, including buying, selling, or advising on investments. Moreover, Bharti and his associates have been banned from offering investment advisory services unless they are properly registered with SEBI. Along with this, a ₹10 lakh penalty has been imposed on Bharti, his company, and three of his associates for violating the regulatory framework.
This case highlights the growing concern around financial influencers (finfluencers) on platforms like YouTube, where many offer investment advice without the necessary credentials or proper disclosure of risks. SEBI’s action serves as a reminder to investors to verify the credentials of anyone offering financial advice, especially on social media. Investors are advised to stay cautious and avoid falling for schemes that promise unrealistic returns without proper transparency.
SEBI has reaffirmed its dedication to safeguarding investors and maintaining the trust and transparency of the financial markets. The regulator continues to work on improving investor awareness and educating the public about the risks associated with unregistered financial advisors and online investment schemes.
