Baba Ramdev Asks All Followers To Buy Ruchi Soya Shares; SEBI Is Not Happy
While the word of spirituality and corporate seem like the North and South Pole of the earth, Patanjali is one brand in India, which has very craftily conjoined both the worlds. Riding on the wave of nationalism the company has made a huge impact in the industry. It has surely become the force to reckon with. While following the agenda of expansion and grabbing the market, Patanjali acquired Ruchi Soya, the publicly listed company is the largest manufacturers of edible oil in India. Being the public face of Patanjali and Ruchi Soya now, Baba Ramdev has irked SEBI for his statement.
Patanjali draws notice from SEBI
Patanjali founder Baba Ramdev’s appeal to get his followers to invest in Ruchi Soya Industries Ltd during a yoga session has landed him in regulatory trouble.
According to sources, the Securities and Exchange Board of India (SEBI) has asked explanation from Ruchi Soya why the yoga guru violated regulatory norms. The SEBI letter which was sent on September 28, is seeking an explanation, for alleged violation of insider trading norms, prevention of fraud, unfair trade practices, and investment adviser regulations.
A notice has been sent to bankers handling Ruchi Soya’s follow-on public offer (FPO) and the compliance team. The intention of this move is to seek clarification on the statements by Ramdev. It seems that the bankers and the compliance team have duly responded to it.
Buy Ruchi Soya shares, appealed Baba Ramdev
The letter was sent after a video clip of Ramdev urging thousands of his followers to invest in the Ruchi Soya stock during a yoga session. The session which was aired on Aastha TV went viral.
“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 learned the mechanisms of investing in the share market. To trade in shares, you require a Demat account. So, open a Demat account today,” Baba Ramdev is saying in the video.
“Get a Demat account when I tell you, and buy Ruchi Soya shares. After Ruchi Soya, buy Patanjali (Ayurved) shares,” he added. It should be noted that even though Patanjali is not a listed entity, the company has announced its intention to go public.
“Get Patanjali’s assessment done by any agency, and the market cap will be in thousands of crores. So, anyone who invests in shares of Patanjali and Ruchi Soya cannot be stopped from becoming a crorepati. 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),” Baba Ramdev said in the video.
How this affects Patanjali and Baba Ramdev, only time will tell.