Baap of Chart SEBI: The Securities and Exchange Board of India (SEBI) has recently taken action against a prominent social media ‘finfluencer’ named Mohammad Nasiruddin Ansari, who operates under the name ‘Baap of Chart’ (BoC). SEBI’s move comes after an investigation revealed Ansari’s questionable stock recommendations, which were disguised as educational offerings to investors and clients.
About Baap of Chart:
‘Baap of Chart’ had a substantial social media presence, with over 443,000 subscribers and more than 70 million views on his YouTube channel (@Baapofchart). The content on his channel promised quick and consistent returns through trading. Ansari also managed a Telegram Group/Channel called “Baap Of Chart Option Hedging” with around 53,000 subscribers. He had a significant following on Instagram and WhatsApp as well.
The investigation disclosed that Ansari continued to provide buy/sell recommendations to his members until the first week of October 2023.
Ansari collected a total of Rs 13.78 crore:
SEBI’s investigation found that Ansari collected a total of Rs 13.78 crore through courses and workshops listed on the Bunch platform and mobile apps. SEBI deemed this entire amount as fees received from fraudulent and unregistered investment advisory activities. Furthermore, more than Rs 3.42 crore was collected through two UPI IDs linked to Ansari and BoC’s accounts at Kotak Mahindra Bank, which were publicly shared on the website and social media platforms.
In total, SEBI concluded that the respondents had collected an amount of Rs 17,20,76,616.09 between January 2021 and July 2023 by enticing clients and investors with misleading and false information regarding course/workshop purchases. These individuals were also added to closed groups and influenced to engage in securities trading.
Despite Ansari’s claims of making profits of 20-30 percent, SEBI discovered that he actually incurred a net trading loss of nearly Rs 3 crore for the period between January 1, 2021, and July 7, 2023.
To safeguard the interests of investors and maintain the integrity of the securities market, SEBI has taken the following actions:
- Ansari and others (Rahul Rao Padamati, Golden Syndicate Ventures Pvt. Ltd) have been directed to “cease and desist” from acting as or presenting themselves as investment advisors, whether using ‘Baap of Chart’ or any other alias.
- Ansari, Rahul Rao, and Golden Syndicate Ventures are barred from buying, selling, or dealing in securities, both directly and indirectly.
- Within 15 days, they are required to deposit Rs 17.2 crore in an escrow account with a scheduled commercial bank.