In a significant move, the Securities and Exchange Board of India (SEBI) has cracked down on social media influencer Mohammad Nasiruddin Ansari
Popularly known as the ‘Baap of Chart’ , Ansari, who claimed to be an investment expert, faced the wrath of SEBI, resulting in a ban from the securities market and a hefty fine of Rs 17.2 crore. But what led to this severe action, and who is Nasiruddin Ansari?
Unveiling the ‘Baap of Chart’: A Self-Proclaimed Investment Expert
Nasiruddin Ansari, operating under the alias ‘Baap of Chart,’ gained fame as a social media influencer providing stock recommendations via platforms like X, Telegram, and YouTube. He marketed his advice as educational training but was, in reality, attempting to sell these recommendations for profit. This deceptive practice caught the attention of SEBI, leading to a stringent response against Ansari, his associate Rahul Rao Padamati, and their company, Golden Syndicate Ventures.
The SEBI Crackdown: Banning the ‘Baap of Chart’ and Associates
SEBI’s investigation revealed that Ansari and Padamati received money for their educational courses despite making false claims about substantial trading profits. Ansari, in particular, boasted about significant gains while incurring substantial losses. SEBI’s order not only imposed an interim ban on all three entities but also issued a show-cause notice for their deceptive practices. The order also prevented them from acting as investment advisors or representing themselves as such, whether under the ‘Baap of Chart’ brand or any other guise.
SEBI’s Swift Response: Protecting Investors and the Securities Market
Ananth Narayan G, a whole-time member of SEBI, emphasized the violation of SEBI’s rules, specifically targeting fraudulent and unfair trade practices and investment advisor guidelines. SEBI acknowledged the risk of the banned entities diverting their ill-gotten gains, prompting immediate action to safeguard the securities market and investors. This proactive stance by SEBI reflects their commitment to curbing unauthorized investment advisors and ensuring the integrity of the financial ecosystem.
A Warning to Financial Influencers: SEBI’s Ongoing Vigilance
SEBI’s crackdown on Nasiruddin Ansari, the ‘Baap of Chart,’ sends a strong message to social media influencers and unauthorized investment advisors. The regulatory body’s directive to regulated entities to disassociate from such influencers underscores the need for vigilance and integrity within the financial space. As SEBI continues its efforts to maintain market transparency and investor trust, the case of the ‘Baap of Chart’ serves as a warning to those attempting to deceive investors through fraudulent practices.**