In its order, the regulator barred Nasiruddin Ansari and his associates, who operated the Baap of Chart platform, from accessing the securities market for allegedly providing unregistered investment advisory services and violating market regulations.
Sebi has also asked Ansari and associates to open an escrow account and deposit Rs 17 crore, which will be used only for refunding investors/ complainants who had availed the investment advisory services.
The repayments to the investors will be effected only through bank transfers with audit trails to identify the beneficiaries of repayments.
The regulator further said the Baap of Chart and associates will issue a public notice in all editions of two national newspapers (one English and one Hindi) and in one local newspaper in vernacular language with wide circulation, detailing the modalities for making the claim for refund, including the details of contact person such as name, addresses and contact details. This should be done within 15 days of the order.
Also Read: Sebi gives nod to Shriram Properties’ CMD Murali Malayappan for indirect acquisitionNasir, widely followed for his trading insights and online courses, ran the platform through social media channels, including Telegram, and used it to promote paid courses and trading strategies.According to Sebi, these activities crossed the line into unauthorized investment advisory, as the recommendations provided were specific and geared toward attracting investors with promises of significant returns. The platform reportedly collected Rs 17.2 crore in fees from clients under the guise of offering education.
Despite presenting itself as an educational initiative, the platform provided specific trading recommendations and lured clients with claims of high profitability, which were not supported by its actual trading performance.
Sebi has now ordered to freeze the bank accounts of those involved. The regulator emphasized that providing investment advice without registration is a violation of norms, highlighting concerns that activities like these could mislead investors and undermine the integrity of financial markets.