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The Securities and Exchange Board of India (SEBI) has taken action against Mohammad Nasiruddin Ansari, the owner of the popular social media platform "Baap of Chart," and six of his associates.
The regulator has directed them to deposit approximately ₹17.21 crore in an escrow account. This sum was allegedly collected through the operation of an unregistered and fraudulent illegal advisory service. Nasiruddin Ansari's YouTube channel, known as @Baapofchart, boasts over 4.43 lakh subscribers and more than seven crore views.
In addition to the financial directive, Ansari, along with Rahul Rao Padamati and Golden Syndicate Ventures Pvt Ltd, have been prohibited from accessing the securities market until further notice.
SEBI has issued an interim order to prevent the continuation of fraudulent and unregistered activities that may harm investors. The investigation found that Ansari was allegedly providing investment recommendations through social media under the guise of providing educational training related to the securities market.
The regulatory body initiated the examination of Nasiruddin Ansari's activities to determine whether he was offering investment advisory services without proper SEBI registration through social media and other means.
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During the investigation, it was discovered that Ansari was promoting himself as a stock market expert, enticing investors to enroll in educational courses and make investments based on his recommendations.
Contrary to his claims of substantial profits, Nasiruddin Ansari reportedly incurred a net trading loss of about ₹2.9 crore. SEBI's order states that he accumulated ₹17,20,76,616.09 in just over two years through unregistered and fraudulent investment advisory activities.
The individuals involved have been given 21 days to respond to the SEBI order and may request a personal hearing to address the allegations.
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