India’s markets regulator SEBI has taken a severe stance against popular social media influencer Mohammad Nasiruddin Ansari, aka ‘Baap of Chart’. They imposed a ban on Ansari from the securities market, accompanied by an enormous fine of Rs 17.2 crores.
But who is Mohammad Nasiruddin Ansari and what led to this stern action by SEBI?
Ansari is a self-proclaimed investment expert and the man behind the famous YouTube channel ‘Baap of Chart’ with more than 4.4 lakh followers. He provided investment advice via his famous moniker across various social media platforms, including X, Instagram and Telegram. According to his X profile, he manages Rs 30 crore fund and aims to take it to Rs 1,000 crore.
However, his actions didn’t go unnoticed by SEBI. They received a complaint against him that claimed he had been looting retail traders by showing assured returns. After a thorough investigation, it was discovered that he was clearly violating the rules: he marketed his stock recommendations as educational training, but in reality, he was trying to sell them to clients and investors. He has been selling courses with claims like 200-300% profit by the trading Bank Nifty.
Sebi found that contrary to his claims that he made profits of 20-30%, he had instead incurred a net trading loss amounting to Rs 2.89 crore from January 2021 to July 2023.
What was SEBI’s order?
In the face of these clear violations, a severe action was taken against ‘Baap of Chart’. He has been restrained from buying, selling or dealing in securities either directly or indirectly in any manner until further orders.
This order comes at a time when SEBI has been actively cracking down on unauthorized investment advisors who sell their stock recommendations under the guise of being financial influencers. The regulatory body has only recently issued a directive to regulated entities, urging them to disassociate from entities like this.
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