The Securities and Exchange Board of India (SEBI) has warned Baba Ramdev to not make any public statements that deviate from the regulatory requirements established following the issuance of a follow-on public offering (FPO). The FPO in discussion is for Ruchi Soya, which filed a draft document with SEBI for a follow-on public offer (FPO) valued up to Rs 4,300 crore.

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Ramdev can be seen in a viral video advising his followers to acquire shares of Ruchi Soya Industries if they want to become crorepatis.

“Ruchi Soya’s FPO is being talked about. I give you the mantra to become a crorepati. Open a Demat account today itself. Buy shares of Ruchi Soya when I tell you. After that shares of Patanjali, whose market cap is lakhs of crores any global agency will tell you,” he is seen saying in Hindi.

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Ruchi Soya is promoted by the Patanjali Ayurved group, which is currently unlisted. Sebi has sent a letter to Ruchi Soya’s Board of Directors, censoring them for the statements.

“In the video, Shri Ramdev, one of the directors of the issuer is observed to be addressing a gathering at one of his Yoga Shivirs or Yoga Meets. In his address, he is observed to be marketing the FPO of Ruchi Soya Industries and in his own words terming the investment as ‘Mantra for becoming a Crorepati’. It is noted that the referred address falls under ‘Public Communication’ as explained under Schedule IX of SEBI (ICDR) Regulations, 2018. Prima-Facie, the attached address by one of the directors of the issuer company appears to be non-compliant with the following clauses of Schedule IX,” Sebi said in the letter to Ruchi Soya’s Board, where Ramdev is a non-executive director.

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Ruchi Soya received a Sebi approval in August to launch its Rs 4,300-crore FPO. The new funding will help the firm decrease its debt and promoter shares. The promoters presently own 98.9 percent of the firm.