SEBI Cracks Down on 'Baap of Chart': Financial Influencer Hit With Rs 17.20 Crore Penalty

In a significant move, the Securities and Exchange Board of India (SEBI) has once again turned its attention towards financial influencers, with its latest action targeting Mohammad Nasiruddin Ansari, popularly known as the 'Baap of Chart.' The market regulator has taken a stern stance against Ansari, accusing him of providing unregistered investment advice under the guise of investor education. As a result, SEBI has imposed a monetary penalty of Rs 17.20 crore and barred the influencer from participating in the securities market.

SEBI's order doesn't stop at Nasiruddin Ansari but also extends to Rahul Rao Padamati and Golden Syndicate Ventures, all of whom have been prohibited from accessing the securities market until further notice. Moreover, they have been instructed to pay Rs 17.20 crore penalty. SEBI's interim order highlights that the Rs 17.20 crore amount was amassed by the finfluencer within a period of just over two years through unregistered and fraudulent investment advisory activities.

The regulatory body's investigation uncovered Ansari's tendency to make extravagant claims, promising guaranteed returns and recovery from losses to those who followed his investment recommendations. This excessive assurance of high returns with unwavering certainty raised SEBI's concerns.

Nasiruddin Ansari's YouTube channel, operating under the handle @Baapofchart, boasts an impressive following, with more than 4.43 lakh subscribers and over 7 crore views. SEBI's examination report revealed that many videos on Ansari's channel offered the allure of quick and consistent returns through trading. Consequently, SEBI has directed the influencers to remove all advertisements and promotions related to their investment courses.

This isn't the first time SEBI has taken action against a financial influencer. In June of this year, PR Sundar, another prominent figure in the world of financial advice, faced SEBI's scrutiny for providing unregistered investment advisory services via social media and Telegram groups. As part of the settlement, Sundar agreed to pay a total amount of Rs 46.80 lakh and to disgorge Rs 6 crore, which includes the profit earned from his advisory services along with the accrued interest.

SEBI's Chairperson, Madhabi Puri Buch, has been vocal about her concerns regarding financial influencers offering investment advice. In line with this stance, SEBI introduced a consultation paper on August 25, proposing measures to limit interactions between regulated entities and unregistered 'finfluencers.' This latest action against Nasiruddin Ansari, along with the previous cases, underscores SEBI's commitment to maintaining the integrity and fairness of the Indian securities market, with a clear message that unregistered and fraudulent investment advice will not be tolerated.