SEBI Takes Decisive Action: 'Baap of Chart' Ordered to Deposit Rs 17.2 Crore in Response to Unregistered Investment Advisory Activities
SEBI has wielded its authority to deliver a resounding victory of good over evil, banishing darkness and negativity in the world of investment advisory.
In a remarkable turn of events, the Securities and Exchange Board of India (SEBI) has wielded its authority to deliver a resounding victory of good over evil, banishing darkness and negativity in the world of investment advisory. Just as we celebrate Dussehra, the festival of triumph, SEBI's recent order, released on Wednesday, October 25, 2023, mirrors the triumph of righteousness. The order serves as a powerful reminder of the age-old narrative of conquering malevolence and welcoming new beginnings.
This particular order by SEBI was handed down in the case of unregistered investment advisory activities conducted by none other than Mohammad Nasiruddin Ansari, popularly known as the 'Baap of Chart.' Intriguingly, the story unfolded with an investigation into Nasir's activities on social media, particularly Twitter (now X) and Telegram. SEBI found that Nasir was seemingly masquerading as an educator in the securities market under the guise of 'Baap of Chart.' Yet, what he was actually offering was investment advice, a practice that demands registration with SEBI under the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013.
SEBI's examination of the matter, spanning from January 1, 2021, to July 7, 2023, uncovered a trail of alarming activities. Notably, on September 5, 2023, Nasir posted a video on his YouTube channel, enticing students with the promise of turning a modest capital into staggering riches. Similarly, on September 24, 2023, another video titled 'The Hero Zero Strategy' was unveiled, tantalizing viewers with dreams of wealth creation. Nasir's reach extended even further; he shared a WhatsApp channel link on October 1, 2023, boasting more than 13,000 followers and continuously dispensing buy and sell recommendations well into the first week of October 2023.
What's most audacious about this case is Nasir's penchant for showcasing his supposed profits from securities trading, all while concealing significant losses totaling approximately Rs 3 Crore over the last 2.5 years. Nasir's audacious behavior extends to his YouTube channel, where he declared, "Now Make Daily Sureshot Profit with BOC AI." In essence, he was consistently luring and enticing investors to partake in the world of securities markets, all under the pretext of 'educational courses.'
The financial repercussions of these actions are staggering. An astonishing amount of Rs 17,20,76,616.09 (Rupees Seventeen Crore Twenty Lakh Seventy Six Thousand Six Hundred Sixteen and Nine Paisa) was amassed over a span of just over 2 years through unregistered and fraudulent investment advisory activities. As a temporary measure, SEBI concluded that Noticee Nos. 1, 2, and 5 are jointly and severally liable for these unlawful gains, especially since they received fees directly into their bank accounts.
As a response, SEBI has issued a directive to the Noticee Nos. 1, 2, and 5, instructing them to establish an escrow account with a scheduled commercial bank and deposit the impounded amount within 15 days from the date of service of the Order. This move ensures that SEBI maintains a lien over the funds, which can only be released with their express permission. It is a bold step, demonstrating that SEBI stands firm against those who seek to exploit investors through deceitful practices, underlining the victory of regulatory authority over financial malevolence.