SEBI sent a letter to Ruchi Soya’s board about it, according to a report released by Commercial standard.
“In the video, Shri Ramdev, one of the directors of the broadcaster, addresses a gathering during one of his Yoga Shivirs or Yoga Meets. In his speech, he is observed that he markets the FPO of Ruchi Soya Industries and, in his own words, qualifies the investment as “Mantra to become a Crorepati”. It should be noted that the reference address falls under “public communication” as explained in Annex IX of the SEBI Regulation (ICDR), 2018. Prima-Facie, the address attached by one of the administrators of the issuing company appears to be non-compliant with the following clauses of Annex IX, ”SEBI said in the letter to the board of directors of Ruchi Soya, where Ramdev is a non-executive director, Commercial standard reported.
Said clause stipulates that a communication from a company planning to operate public contracts must contain only the information contained in the draft information memorandum. It also says: “No public information regarding the issue shall contain any offer of incentives, to investors, whether direct or indirect, in any way, in cash or in kind or in services or otherwise. . “
“In view of the above, you are hereby warned to ensure compliance with the SEBI Regulation (ICDR), 2018. The warning is issued without prejudice to any future action”, states the letter from SEBI, Commercial standard added.
“In accordance with SEBI standards, only certified investment advisers can give market-related investment advice on buy and sell stocks and the guru can be seen advising his supporters against regulation,” moneycontrol said. com quoting Sonam Chandwani, Managing Partner at KS Legal. & Associates, as the saying goes.
He also quoted RS Loona, managing partner, Alliance Law, as saying that Ramdev’s promise of crore returns if they invest in Ruchi Soya shares is not in the mind of the market. “All advisers must present their clients with a true and fair view of an investment and also make them aware of the risks involved. Therefore, his statement is misleading, ”he said.
National herald has contacted SK Tijarawala, spokesperson for Baba Ramdev, for comment on the matter. This copy will be updated as a response is received.