A financial influencer, also known as finfluencer, who was also involved in imparting training related to stock market trading has been asked to part with a little over ?12 crore, which it made unlawfully.
The funds are to be credited or deposited by Ravindra Balu Bharti into an interest-bearing escrow account that has been set up in a nationalised bank especially for that purpose. The regulator stated in an order that the escrow account(s) would establish a lien in favour of SEBI and that the funds held within cannot be released without SEBI's approval, reported ANI.
Ravindra Bharti Education Institute Pvt. Ltd (RBEIPL), founded by Ravindra Balu Bharti in 2016, along with his wife, Shubhangi Bharti, claims to be primarily involved in imparting training and education related to stock market trading activities. (Also Read: SEBI chief Madhabi Puri Buch dubs IIM Ahmedabad her 'maayka', reveals a college professor)
From February 3, 2016, to October 3, 2023, Ravindra Balu Bharti served as a director of the RBEIPL. He is the son of ABC Limited stock trader Balu Motiram.
According to ANI, SEBI passed an interim order against an unregistered investment advisory named Ravindra Bharti Education Institute Private Ltd (RBEIPL), its former director Ravindra Balu Bharti and his wife Shubhangi Bharti, and current directors Rahul Ananta Gosavi, and Dhanashri Chandrakant Gosavi.
Following an investigation, SEBI declared that the noticees would also have to stop providing investment advisory services and stop posing as or representing themselves as such. Additionally, until further instructions are received, they are prohibited from purchasing, selling, or dealing in securities in any way, whether directly or indirectly.
"An amount of INR 12,03,82,130.91 being the total unlawful gain earned from the alleged unregistered investment advisory business, shall be impounded from Noticee no. 1 (Ravindra Bharti Education Institute Private Limited)," SEBI's order said. (Also Read: ‘Only girl who pulled out of placement’ from IIM-A is now SEBI chief. B-school says she ‘rewrote the rules’)
Ravindra Bharti has two YouTube channels named Bharti Share Market Marathi with 10.8 lakh subscribers and Bharti Share Market - Hindi with 8.22 lakh subscribers.
The primary responsibility of a securities market regulator like SEBI is to protect the interest of investors.
The order disclosed "how the investors' confidence has been compromised and how the systems are being abused for personal gains and attainments by entities like Noticee no. 1 by, devising mischievous ways to circumvent the provisions of laws for their personal enrichment but in detriment to the investors."
Guaranteed returns up to 1000 per cent is a clear case of abuse of investors' confidence in the securities market, the order observed. Investors were lured to take the advisory services by projecting returns in the range of 25 to 1000 per cent.
Investors who chose to use these services had to sign a contract outlining the specific terms and conditions under which they would receive investment advisory services; this included information about the expected returns on investments made through the advisory, the fee to be paid in advance, and the profit-sharing percentage in the event that returns exceeded expectations.
"India's capital market in the recent times has witnessed tremendous growth, characterized particularly by increasing participation of common public based on investors' confidence. This confidence in the capital market can be sustained largely by ensuring investors protection. Disclosure and transparency are the two pillars on which market integrity rests," the order copy read.
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