SEBI irked by Baba Ramdev's new stock guru avatar

Baba Ramdev's new avataar is not pleasing the market regulator SEBI who as per reports has sent a notice to Ramdev's company Ruchi Soya asking for an explaination.

In a viral video Baba Ramdev is seen 'preaching' to yoga followers to buy Ruchi Soya and Patanjali stock. "Nowadays, there is a lot of buzz on the Ruchi Soya FPO. Now, do you want to become a crorepati? I will give you the mantra to become a crorepati. I have just learnt the mechanisms of investing in the share market. To trade in shares, you require a demat account. So, open a demat account today. When I tell you, and buy Ruchi Soya shares. After Ruchi Soya, buy Patanjali (Ayurved) shares," Ramdev advised followers on devotional channel Aastha

Sources have told The Mint that SEBI has asked Ruchi Soya to explain why the yoga guru violated regulatory norms. Bankers to Ruchi Soya who is currently looking at a FPO have responded to the market regulator's queries as per reports. Patanjali acquired Ruchi Soya in 2019 through the insolvency process.

I am giving you this guarantee in the morning. But don’t buy or sell; that’s a gamble. Buy shares, sit tight and take Samadhi (meditation)," Ramdev said in the video.

Read/Watch Also: Ruchi Soya's 8,764% stock surge prompt SEBI to change re-list process

The advise given by Ramdev can be seen as an alleged violation of insider trading norms and investment adviser regulations.
While Ramdev does not have any personal holdings in either Ruchi Soya or Patanjali, he is a non-executive director for Ruchi Soya, which legally makes him an insider.

Ruchi Soya has already faced in a run-in with SEBI on charges of manipulation of shares after relisting in 2020 as the share prices zoomed 8,764% increase in just five months.