SEBI cracks down on finfluencer with Rs 9.5 cr refund and ban

The Securities and Exchange Board of India (SEBI) has once again taken action against finance influencer Ravindra Balu Bharti and his company, Ravindra Bharti Education Institute (RBEIPL), for operating an unregistered investment advisory business.

According to a report by The Times of India, SEBI has barred Bharti, his company, and their associates from participating in the securities market until April 4, 2025. Additionally, SEBI has directed them to return Rs 9.5 crore, the amount amassed through unlawful activities.

SEBI’s latest investigation reportedly revealed that RBEIPL targeted novice investors by providing unregistered investment advice and trade recommendations through two popular YouTube channels, “Bharti Share Market Marathi” and “Bharti Share Market - Hindi”, which have a combined following of over 1.9 million subscribers. Bharti and his company capitalised on their extensive reach to influence audiences into making high-risk investments.

The company allegedly employed deceptive tactics, such as offering multiple investment plans to the same individuals, which effectively restricted their ability to make independent financial decisions. SEBI’s order highlighted that Bharti’s operations violated securities regulations and failed to uphold the fiduciary responsibility to prioritize clients’ best interests.

‘Recurring Offenses’

RBEIPL, co-founded by Bharti and his wife Shubhangi in 2016, has been embroiled in multiple controversies related to unauthorised advisory activities. Earlier this year, SEBI’s interim order mandated the seizure of Rs 12.03 crore, the total unlawful gains allegedly earned through unregistered services. The order also required Bharti and his associates to refrain from engaging in securities transactions or offering investment advice until further notice.

Bharti’s exaggerated claims of guaranteed returns—ranging from 25 to 1000 percent—further intensified SEBI’s scrutiny. According to the order, these false promises amounted to manipulation and exploitation of investor confidence, a violation of SEBI’s regulations.

Curbs on Financial Influencers

SEBI’s crackdown on Bharti’s operations is part of a broader initiative to regulate financial influencers, or “finfluencers”, who operate without proper authorization. In recent months, SEBI has introduced stricter norms to curb misleading financial advice on social media platforms.

Under these rules, regulated entities such as brokers and mutual funds cannot partner with unregistered finfluencers for promotional purposes, including financial referrals.
Finfluencers who strictly engage in investor education are exempt from these restrictions, provided they steer clear of specific investment advice or promises of returns.

Those offering securities advice must register with SEBI, ensuring they meet industry standards. Registered influencers are required to include their Sebi registration number, disclaimers, and contact details while adhering to a formal code of conduct.

Unregistered influencers are banned from making performance-related claims.