The Securities Exchange Board of India (SEBI) has taken decisive action against Mohammad Nasiruddin Ansari, who is known as ‘Baap of Chart’ on social media platforms, including X (formerly Twitter). SEBI has banned him from participating in the securities market due to his fraudulent investment advisory activities. Ansari used his social media presence to offer buy/sell recommendations in the stock market, and his actions have now resulted in significant regulatory consequences.
In its order, SEBI also directed Mohammad Nasiruddin Ansari to deposit approximately ₹17.20 crore in an escrow account. This sum represents unlawful gains generated through his ‘educational courses’ related to the securities market.
SEBI’s order explicitly states that Ansari, and any associates involved, must cease and desist from acting as or holding themselves out as investment advisors. They are prohibited from soliciting or undertaking any activity in the securities market, directly or indirectly, whether registered or fraudulent, under the ‘Baap of Chart’ or any other alias. This stern action by SEBI emphasizes the seriousness of the allegations against Ansari and the imperative to protect investors from unscrupulous practices.
The market regulator further mandates the impounding of proceeds from the bank accounts of the individuals involved, and this action is directed jointly and severally. Additionally, Ansari and his associates are ordered to open an escrow account with a scheduled commercial bank and deposit the impounded amount within 15 days from the date of SEBI’s order. In this escrow account, SEBI will hold a lien, ensuring that the funds cannot be released without SEBI’s permission.
The order issued by SEBI highlights the significant concerns raised by Ansari’s activities on social media platforms. SEBI observed that Ansari portrayed himself as a stock market expert and actively lured investors to enroll in various ‘educational courses’ related to the securities market. Through these courses, he enticed participants to invest in the securities market by making assurances of near-certain profits if they followed his recommendations or advice.
The market regulator’s investigation led to the conclusion that Mohammad Nasiruddin Ansari had collected more than ₹17.20 crore through fraudulent and unregistered investment advisory activities. To support these findings, SEBI presented a detailed order that included references to the various platforms where Ansari was offering his courses. The order even included screenshots of chats between Ansari and his clients as evidence.
This action by SEBI reinforces the importance of regulating investment advisory services in the securities market and ensuring that they adhere to the necessary legal and ethical standards. The protection of investors from fraudulent practices and the preservation of market integrity are paramount goals for regulatory authorities like SEBI.
The case of ‘Baap of Chart’ underscores the need for vigilance in the digital age, where social media can be a powerful platform for sharing information and offering financial advice. Regulators must remain proactive in identifying and addressing unlawful activities that can impact the financial well-being of investors and the overall stability of the securities market.
