Ravindra Balu Bharti is the founder of Ravindra Bharti Education Institute
Market regulator Securities and Exchange Board of India (SEBI) has asked a financial influencer (finfluencer) to return unlawfully obtained gains amounting to over Rs 12 crore. This comes as a significant move to safeguard investor interests and uphold market integrity amidst growing concerns about fraudulent practices in the securities market.
The finfluencer in question, identified as Ravindra Balu Bharti, has been instructed by SEBI to deposit the Rs 12 crore into an interest-bearing Escrow Account held in a nationalised bank. The creation of this Escrow Account serves to secure the funds under SEBI's jurisdiction, ensuring they cannot be released without explicit permission from the regulatory body.
Ravindra Balu Bharti is the founder of Ravindra Bharti Education Institute Pvt. Ltd. (RBEIPL), a company he co-founded in 2016 alongside his wife, Shubhangi Bharti. RBEIPL reportedly engages in educational activities related to stock market trading, operating through a website titled "Bharti Share Market"
SEBI's interim order extends beyond Ravindra Balu Bharti alone. The regulator's order encompasses RBEIPL and several other individuals associated with the entity. Notably, SEBI has barred them from offering investment advisory services or engaging in securities trading activities until further notice.
SEBI's investigation exposed a pattern of misconduct wherein investors were misled with promises of exorbitant returns, reaching up to 1000 per cent.
"India's capital market in the recent times has witnessed tremendous growth, characterised particularly by increasing participation of the 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," SEBI's order read.
Investors who chose these services had to engage in an agreement that outlined the specific terms and conditions for receiving investment advice. This agreement detailed the fees associated with accessing advisory services, projected investment returns, and the percentage of profits to be shared if returns surpass expectations.