Sebi bars finfluencer from securities market, asks to disgorge Rs 17 cr
Mumbai, Oct 25, 2023
'Baap of Chart' gave trade recos in the garb of education courses, mislead clients, alleges Sebi
The Securities and Exchange Board of India (Sebi) on Wednesday barred financial influencer Mohammad Nasiruddin Ansari, operating with the handle 'Baap of Chart' and known as Md Nasir on social media, from accessing the securities market. Further, the market regulator has asked him to disgorge Rs 17.2 crore for indulging in unregistered investment advisory.
'Baap of Chart' has over 443,000 subscribers on YouTube and 83,000 followers on X (formerly Twitter) and has provided trading recommendations and courses.
The market regulator has alleged that Nasir has been providing trading recommendations under the 'garb of educational courses', which were charged for. It is also alleged that he was 'luring clients/investors through misleading or false information to purchase his courses/workshops'.
The Sebi investigation shows that Nasir incurred a net trading loss of Rs 2.89 crore from January 2021 to July 2023, contrary to his claims of making 20-30 per cent profits and having 95 per cent accuracy.
"Nasir, who claims to provide strategies for trading that would lead to 200-300 per cent profit or assured or near-assured returns, has actually incurred a net loss of Rs 2.89 crore through trading in securities and has concealed such facts from the investors in his videos, workshops, and groups," said Sebi.
The markets regulator has directed Nasir and two others to deposit the impounded amount in an escrow account within 15 days and is barred from diverting any funds raised from investors.
Sebi has also directed them to remove all s and promotions for the courses.
While barring them from the securities market until further notice, Sebi has provided a window of three months, or until the expiry day, whichever is earlier, for squaring off open positions.
"Investors and clients were assured that upon payment of the consideration or subscription amount, Nasir will give them dedicated support or personal guidance one by one and will call them for such guidance," said Sebi.
[The Business Standard]
