SEBI Initiates Action Against Unregistered Investment Advisory Activities by Mohammad Nasiruddin Ansari, Also Known as “Baap of Chart”

In a significant development, the Securities and Exchange Board of India (SEBI) has taken decisive action against unregistered investment advisory activities carried out by Mohammad Nasiruddin Ansari, popularly known as “Baap of Chart.” The regulatory authority has issued an interim order cum show-cause notice under relevant sections of the Securities and Exchange Board of India Act, 1992. This action comes in response to the alleged promotion of investment advice and recommendations via social media platforms, seemingly disguised as educational training related to the securities market.

Background:

SEBI initiated an examination after identifying tweets on Twitter and Telegram that suggested Nasiruddin Ansari, under the moniker “Baap of Chart,” may have been providing buy and sell recommendations through social media while positioning himself as an educator. The regulatory investigation spans from January 1, 2021, to July 7, 2023.

Key Findings:

During the investigation, several concerning activities were uncovered:

1. Inducement and Assurances of Profit: Nasiruddin Ansari was found to promote himself as a stock market expert on various social media platforms, luring investors to enroll in various ‘educational courses’ and promising near-certain profits if his recommendations were followed.
2. Operational Structure: Nasiruddin Ansari operates “Baap of Chart” as a sole proprietorship firm and has uploaded his ‘educational courses’ on a website and apps provided by Bunch Microtechnologies Private Limited, collecting money from enrolments.
3. Fee Collection and Beneficiary Accounts: Payments for ‘educational courses’ were credited to the bank accounts of Nasiruddin Ansari, Baap of Chart, Golden Syndicate Ventures Pvt. Ltd. (a company in which Nasiruddin Ansari is a significant shareholder), and P. Rahul Rao (another significant shareholder of Golden Syndicate Ventures Pvt. Ltd.).

Regulatory Actions:

SEBI’s actions are based on its concern that Nasiruddin Ansari, through Baap of Chart, has been involved in unregistered investment advisory activities, which may violate relevant regulations.

Notable Highlights:

1. Nasiruddin Ansari is alleged to provide buy/sell recommendations to clients under the guise of providing educational courses related to the securities market.
2. Several instances indicate that Nasiruddin Ansari assured profits or guaranteed returns, even promising to refund clients three times the amount paid if these guarantees were not met.
3. Nasiruddin Ansari’s significant online presence, including YouTube, Telegram, Instagram, and Twitter, along with a substantial subscriber and follower base, raised concerns regarding his influence in the retail trading community.
4. SEBI has taken action against Nasiruddin Ansari and other entities involved, seeking an explanation for these activities, which could potentially deceive and harm investors.

This regulatory action underscores the importance of investor protection and upholding the integrity of India’s securities market. Further developments in this case will be closely monitored by SEBI as it continues to safeguard the interests of investors and maintain market integrity.