Sebi Bans 'Baap of Chart' and 6 Others, Orders ₹17.2 Crore Repayment

In a decisive action against financial influencers, the Securities and Exchange Board of India (Sebi) on Monday imposed restrictions on seven entities, including Mohd Nasiruddin Ansari, for up to one year. Ansari operated unauthorized investment advisory services under the alias 'Baap of Chart.'

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Sebi directed Ansari and others, including Rahul Rao Padamati, Tabraiz Abdullah, Asif Iqbal Wani, Golden Syndicate Ventures Pvt Ltd (GSVPL), Mansha Abdullah, and Jadav Vamshi, to repay ₹17.2 crore within three months.

Ansari, known on the social media platform X (formerly Twitter) as 'Baap of Chart,' offered stock market buy/sell recommendations. These were presented as part of educational training in the securities market, Sebi stated.

The regulator also imposed penalties: ₹20 lakh on Ansari and ₹2 lakh each on Padamati, Abdullah, Wani, GSVPL, Mansha Abdullah, and Vamshi.

"Unregistered investment advisors like Nasir pose significant risks to investors by disseminating misleading information," remarked Sebi's whole-time member Amarjeet Singh in the final order. Without holding a registered Investment Advisory (IA) certificate, Ansari, along with the other entities, provided advisory services promising unrealistic returns, primarily to attract funds through course fees.

Despite incurring personal losses in securities trading, Ansari allegedly misled investors with false assurances of high returns. Singh noted that Ansari’s promotional YouTube videos were designed to project an illusion of extraordinary gains, enticing uninformed individuals into his programs and subsequent trading activities.

Sebi’s findings revealed that Ansari assured returns to clients, encouraging them to enroll in his "educational courses" offered under the 'Baap of Chart' banner. However, Ansari concealed his own trading losses and engaged in fraudulent practices that breached regulatory guidelines.

Furthermore, Sebi observed that Ansari, Padamati, and GSVPL failed to comply with interim directives to open an escrow account for depositing illicit proceeds. These funds, being the outcome of unlawful activities, must be refunded to affected clients, Sebi emphasized.

The regulator concluded that while Ansari was the face of the unregistered advisory service, the other entities played supporting roles in the operation. Collectively, they amassed ₹17.2 crore in fees from the unauthorized activity, contravening market regulations.

Consequently, Sebi barred Ansari from the securities market for one year and imposed six-month bans on the other six individuals. The proceedings stem from an interim order-cum-show cause notice issued on October 25, 2023, where Sebi identified violations of Investment Advisers (IA) norms and Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations.