Table of Contents
Fake Finfluencer: Stock Market Scam
These days, demat accounts are being opened rapidly in the country. The interest of small investors in the stock market seems to be increasing significantly. If we talk about the number of demat accounts opened every month, this figure is beyond 30 lakhs. This is the first time that the total number of demat accounts has crossed 15 crore.
As retail investors are rapidly entering the market, many financial influence shops are also running their shops, promising false returns or rather bumper returns to new retail investors and extorting huge amounts from them. They are collecting money in the name of fees. One such case has come to light.
Action should be taken against such people who are giving misleading advice related to the stock market. Market regulator Security Board of India (SEBI) has taken action. Now the sword of SEBI has fallen on the famous financial influencer Ravindra Balu Bharti. SEBI has taken this step by taking strict action against Ravindra Balu Bharti.
After all, who is Ravindra Balu Bharti and what did he do to which SEBI was forced to take all this action?
Who is Ravindra Balu Bharti?
First of all, let us tell you that he is a famous financial influencer. He has more than 20 lakh followers. Ravindra Bharti and his wife Shubhangi established an education institute or company in 2016, named Ravindra Bharatiya Education Institute. His company used to do educational activities related to stock market trading i.e. education-related information. He claimed to provide information related to education.
Apart from this, Mr Balu Bharti also ran a website named ‘Share Market’. Through which he also collected fees from the subscribers.
Ravindra Bharti Balu runs two YouTube channels, one ‘Bharti Share Market Marathi’ having about 10.8 lakh subscribers and the other ‘Bharti Share Market Hindi’ which has about 8.22 lakh subscribers.
His organization gave false advice and the advice given by people not authorized to do business was not official. That is, what they meant here was that they were unregistered. They were providing information and education about the stock market without being authorized. When you are unauthorized then you need to take permission from SEBI. How were you giving information to people even when you were not authorised? And this was a big question for SEBI.
This channel was being run by people who were not registered in the stock market. Even Ravindra Bharat and the people associated with him used to make fake promises of almost 1000% guaranteed returns to the investors. They used to charge huge fees from the investors coming to them and saying that whatever stock they would tell you, they would give you tips and you would get a guaranteed return of 1000% and that too.
It is said that through the institution, investors were lured with the expectation of returns ranging from 25% to 1000% for services which were ‘Advisory Services’ and huge fees were charged. Investors who opted for such services had to enter into a contract that included detailed terms and conditions for investor advisory services and were charged hefty fees for their benefits.
After entering the contract, the investors were asked through a specific medium to invest. And they were asked that if they permit us, then they will trade on their behalf. While asking for permission, the permission was sought through different mediums.
So that they cannot be caught, this means the advice was given through one medium, and through the other medium they only had to permit. And it was falsely promised that you would get huge returns from this. Where there was no such benefit, this is how it all happened. Many people paying the fees complained, after which SEBI looked into the matter.
Find Order here : SEBI Order in the matter of Ravindra Bharti Education Institute Private Limited
What does SEBI have to say here?
SEBI generally says that this action has been taken to keep investors safe and in their interest. Apart from this, people who make false claims regarding the stock market are also being cracked down on. SEBI said in its order that the stock market has performed well in recent times.
Before this, except for the last month, the returns have been very good and due to this, the interest of investors in the stock market is very high, increasing it further for correct information, claims and transparency. To maintain that confidence, thus SABI’s action against huge guaranteed return claims is completely justified.
What action has been taken?
Here SEBI’s punishment has fallen on both Mr. Balu and his wife Shubhangi. He has asked to close the educational institution, whatever his institution was. Not only this but also issued instructions to deposit Rs.12 crores, they will have to deposit these Rs.12 crores in the Escrow account.
Whatever they told the people, they all called them false promises that so many letters would be received, whatever fee would be charged from them. will be taken, will have to be returned and this amount will be approximately Rs.12 crores is a huge amount. Many complaints have been received against them that they have earned this money by misleading the investors.
Along with this, SEBI has ordered Ravindra Bharti that he and his wife will no longer be able to participate in any activity in the security market.
But you can see the way the financial impact is very much present in the market these days. Those who promise you such tremendous bumper returns, many of them also prove to be hollow and its effect is in front of you as an example of which SEBI has ordered to return Rs 12 crore.
Find Order here: SEBI Order in the matter of Ravindra Bharti Education Institute Private Limited
Check this for Upcoming IPOs: IPO Pulse
Check this to learn Trading: Trade & Tutorials
