Regulatory Action: 'Baap of Chart' Faces SEBI Wrath for Unregistered Investment Advice

The Securities and Exchange Board of India (SEBI) has issued a stern order against financial influencer Mohammad Nasiruddin Ansari, popularly known as the 'Baap of Chart.' This move is in response to Ansari providing investment advice without proper registration, disguising it as investor education. SEBI has not only banned Ansari from the securities market but also imposed a hefty penalty of ₹17.20 crore.

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The Securities and Exchange Board of India (SEBI) has issued a stern order against financial influencer Mohammad Nasiruddin Ansari, popularly known as the 'Baap of Chart.' This move is in response to Ansari providing investment advice without proper registration, disguising it as investor education. SEBI has not only banned Ansari from the securities market but also imposed a hefty penalty of ₹17.20 crore.

Furthermore, SEBI has extended this prohibition to other parties involved, including Md Nassiruddin Ansari, Rahul Rao Padamati, and Golden Syndicate Ventures. They are also required to deposit ₹17.20 crore as a penalty. SEBI's interim investigation has revealed that Ansari accumulated ₹17,20,76,616.09 over a little more than two years through an unregistered and deceitful investment advisory.

During the inquiry, SEBI noted that Nasir provided assurances with an unusually high level of certainty regarding returns, profits, and guaranteed recovery from losses by adhering to his recommendations. Nasir's YouTube channel, '@Baapofchart,' boasts over 4.43 lakh subscribers and more than 7 crore views. SEBI's examination report highlighted that many videos on the channel made promises of swift and consistent returns through trading.

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SEBI has also instructed the involved parties to remove any advertisements and promotions related to investment courses. This isn't the first time SEBI has taken Action against a finfluencer. In June of the same year, PR Sundar, another financial influencer, faced SEBI scrutiny for providing unregistered investment advice through social media and telegram groups. Sundar ultimately agreed to pay a settlement amount of ₹46.80 lakh and disgorge ₹6 crore, which encompasses profits earned from advisory services and accrued interest.

Madhbi Puri Buch, the chairperson of SEBI, has expressed concerns about finfluencers offering investment advice. SEBI introduced a consultation paper on August 25, proposing restrictions on interactions between regulated entities and unregistered 'finfluencers'. This recent action against the 'Baap of Chart' underscores SEBI's commitment to regulating the financial advice landscape.