SEBI bans YouTube influencer for illegal investment advisory services, imposes Rs 9.5 crore fine

India's securities market watchdog, the Securities and Exchange Board of India (SEBI), has taken a decisive action against YouTuber Ravindra Balu Bharti and his enterprise, Ravindra Bharti Education Institute, for illegally operating an unregistered investment advisory business. SEBI has barred the duo from participating in the securities market until April 4, 2025, and mandated them to return Rs 9.5 crore collected through unauthorized activities.

SEBI's investigation uncovered Bharti, exploiting his massive online presence—with 1.9 million subscribers across two YouTube channels, enticed inexperienced investors with unauthorized stock market advice, trade tips, and even execution services. Promising "high returns" without highlighting the inherent risks, the company misled its followers, flouting SEBI’s strict regulatory framework.

The investigation revealed that the company also deployed manipulative tactics, such as selling multiple investment plans to the same individuals, effectively limiting their ability to make independent financial decisions.

SEBI underscored in its findings that Bharti and his firm blatantly violated securities laws and neglected their fiduciary responsibility to act in the best interests of their clients.

Apart from the order to refund Rs 9.5 crore, SEBI has imposed additional penalties to ensure accountability. Bharti, his company, and their associates are barred from engaging in any securities market activities until April 2025. Furthermore, they are prohibited from offering investment advisory services without acquiring proper SEBI registration.

A financial penalty of Rs 10 lakh has also been imposed on Bharti and his associates.

"This serves as a deterrent against fraudulent activities that undermine investor trust and market integrity," the regulator emphasized.