Fined Rs 17 crore by Sebi: All you need to know about 'Baap of Chart'

Sebi has alleged that Md Nasir has been providing trading recommendations under the 'garb of educational courses', which were charged for

The Securities and Exchange Board of India (Sebi) on Wednesday barred financial influencer Mohammad Nasiruddin Ansari, operating with the handle "Baap of Chart" on social media, from accessing the market. The market regulator has also asked him to disgorge Rs 17.2 crore for indulging in unregistered investment advisory.

"Baap of Chart", known as Md Nasir, has over 443,000 subscribers on YouTube and 83,000 followers on X (formerly Twitter) and has provided trading recommendations and courses.

Who is Mohammad Nasiruddin Ansari?

Ansari, according to a report by Indian Express (IE), is a sole proprietor of the firm "Baap of Chart (BoC). He called himself a stock market expert on social media and prompted clients to enrol for his "educational courses".

According to Sebi, he provided stock recommendations on YouTube, X, Instagram, WhatsApp and Telegram. He also offered courses on mobile apps. It is reported that he was selling 19 courses.

Why has 'Baap of Chart' been penalised by Sebi?

Sebi 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 200-300 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.

"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.

What has 'Baap of Chart' been fined?

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 advertisements 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.

Has any other person been named in the scam?

According to Sebi, the money collected from investors was credited to a bank account of Ansari, BoC and Golden Syndicate Ventures Pvt Ltd. Ansari is a significant shareholder of the company. P Rahul Rao, another significant shareholder of Golden Syndicate Ventures, has also been named in the Sebi order.

Sebi named four other directors of Golden Syndicate Ventures, namely Asif Iqbal Wani, Tabraiz Abdullah, Mansha Abdullah and Vamshi Jadhav. Money was credited to the accounts of these four individuals as well.