Ruchi Soya gets letter from Sebi on norm violation

Jayshree P Upadhyay and Swaraj Singh Dhanjal norms, two people with direct knowledge of the matter said, seeking anonymity.

“The Sebi letter seeking an explanation, sent on September 28, is for alleged violation of insider trading norms, prevention of fraud, unfair trade practices and investment adviser regulations,” one of the two people said. “A notice was sent to bankers handling Ruchi Soya’s follow-on public offer (FPO) and the compliance team, seeking clarification on the statements by Ramdev. The bankers and the compliance team have duly responded to it,” said the second person. Email queries sent to Ramdev’s media team and Sebi remained unanswered.

The capital markets regulator sent the letter after a video clip of Ramdev urging thousands of his followers to invest in the Ruchi Soya stock during a yoga session aired on Aastha TV went viral. Patanjali acquired Ruchi Soya in 2019 through insolvency process. “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,” Ramdev is heard saying in the video clip. So far, it appears to be an attempt to educate his followers about investments. But the appeal soon moves into murky territory.

“Get a demat account when I tell you, and buy Ruchi Soya shares. After Ruchi Soya, buy Patanjali (Ayurved) shares,” he added. Though Patanjali is not a listed entity, the company has announced its intention to go public.