Sebi bars 'finfluencers', orders to disgorge Rs 17 cr

The markets regulator Securities and Exchange Board of India (Sebi) has banned three entities from the securities  market. It has also ordered disgorging over Rs 17 crore from the three entities. The entities run an unauthorised investment advisory services called ‘Baap of Chart’.

Mohammad Nasiruddin Ansari, who described himself as an investment wizard, provided recommendations on stocks in the name of ‘Baap of Chart’ through the social media platform X and messaging app Telegram. The recommendations were given in the garb of providing educational training related to the securities market, Sebi said.

Besides Ansari, Padamati and Golden Syndicate Ventures have been barred from the securities markets until further orders. Sebi ordered them to cease and desist from acting as or holding themselves out to be investment advisors, whether using ‘Baap of Chart’ or otherwise.

In its 45-page interim order cum show cause notice, Sebi found that Rs 17.21 crore has been accumulated during a period of just over two years from carrying out investment advisory activities, which are both unregistered and fraudulent.

In view of receipt of fees for ‘educational courses’ directly in their bank accounts prima facie, the regulator concluded that Nasir, Padamati and Golden Syndicate Ventures are jointly and severally liable for alleged unlawful gains as an interim measure.
By indulging in such activities, the entities flouted the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) and Investment Adviser (IA) rules.

Further, the regulator directed Nasir, Padamati, Tabraiz Abdullah, Asif Iqbal Wani, Golden Syndicate Ventures, Mansha Abdullah and Jadav Vamshi to jointly and severally disgorge the Rs 17.21 crore collected from clients/ investors through unregistered investment advisory activities.

The markets watchdog also directed them to refrain from accessing as well as associating themselves with the securities markets for an appropriate period.
The order came after Sebi analysed certain tweets on social media platforms X and Telegram, where Nasir was prima facie observed to be providing recommendations (buy/sell) through social media in the name of ‘Baap of Chart’ in the garb of providing educational training related to the securities market.

(With inputs from PTI)