SEBI bans 'Baap of Chart' from securities market, orders over Rs 17 crore refund in unlawful gain

Baap of Chart Banned and Fined: Indian market regulator SEBI has banned finfluencer Baap of Chart aka Mohammad Nasiruddin Ansari from accessing the securities market until further orders. SEBI has also asked him to refund over Rs 17.20 crore in an escrow account collected from carrying out unregistered and fraudulent illegal advisory service.

An Escrow account is a third-party account where funds are kept before they are transferred to the ultimate party.

SEBI's Order on Baap of Chart

In an interim order, SEBI has said that the action is taken to prevent "the continuation of any further fraudulent or unregistered activities in the interest of investors, and for impounding and retaining such quantified alleged illegal gains".

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“Noticee Nos. 1 (Mohammad Nasiruddin Ansari), 2 (Rahul Rao Padamati) and 5 (Golden Syndicate Ventures Pvt. Ltd. ) are restrained from buying, selling or dealing in securities either directly or indirectly, in any manner whatsoever until further orders. If Noticee Nos. 1, 2 and 5 have any open position in any exchange traded derivative contracts, as on the date of this Order, they can close out / square off such open positions within 3 months from the date of this Order or at the expiry of such contracts, whichever is earlier. The said Noticee Nos. 1, 2 and 5 are permitted to settle the pay-in and pay-out obligations in respect of transactions, if any, which have taken place before the close of trading on the date of this Order”, the order states.

The order further states that Rs 17,20,76,616.09 (Rupees Seventeen Crore Twenty Lakh Seventy Six Thousand Six Hundred Sixteen and Nine Paisa) has been accumulated during a period of just over two years. This by carrying out investment advisory activities which are both unregistered and fraudulent.

Baap of Chart - Unregistered investment advice, under the garb of education

SEBI has also said that the finfluencer has been selling unregistered investment advice, under the garb of education. The order observed that Ansari had been making claims of making profits of Rs 3-6 lakh per month to investors. He has also stated that upon payment for courses, Nasir will give dedicated support and guide everyone personally for live market transactions.

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“It is observed that Nasir is inducing clients/ investors by assuring profits/ returns of a minimum INR 3,00,000 and extending to 6,00,000 per month and also giving recommendation to buy. Further, it is also stated that upon payment for courses, Nasir will give dedicated support and guide everyone personally for live market transactions”, the order read.

The order further added that Nasir is giving recommendations to the clients in private groups and luring investors/ clients to invest in the securities market by assuring returns.

“In view of the above, I note that under the garb of providing courses related to the securities market, Nasir is giving recommendations to the clients in private groups and luring investors/ clients to invest in the securities market by assuring returns”, SEBI stated