Who is Baap of Chart owner Mohammad Nasiruddin Ansari? Why has SEBI banned him from the markets?

Market regulator Securities and Exchange Board of India (SEBI) has cracked down on ‘finfluencer’ Mohammad Nasiruddin Ansari, the owner of ‘Baap of Chart’, barring him from the securities market. He has also been directed to pay back Rs 17.2 crore, which SEBI claims he made by “misleading investors and influencing them to deal in securities”.

The development comes amid a growing call on social media platforms for action against these so-called ‘finfluencers’ – online influencers who give financial advise to ordinary investors – over concerns about the feasibility of their claims of making profits by following their trading strategies.

Who is Mohammad Nasiruddin Ansari and what is ‘Baap of Chart’? What are SEBI’s allegations against him? Let’s find out.

Who’s Mohammad Nasiruddin Ansari?

Ansari, the sole owner of the firm Baap of Chart (BoC), endorsed himself on social media as a stock market expert.

He encouraged investors to enrol in his “educational courses” on the securities market through a website and apps on Google Play and Apple’s App Store, as per Indian Express. He also conducted physical workshops in several cities to train investors about the securities market.

Ansari is present on several social media platforms and has a massive following.

His YouTube channel with the name ‘Baap of Chart’ has 4.43 lakh subscribers and over 7 crore views. Ansari’s Telegram channel called Baap Of Chart Option Hedging has about 53,000 subscribers. He has amassed 13,000 followers on his WhatsApp channel and around 59,000 on Instagram, as per SEBI. The verified account of Md Ansari with the handle @baapofchart has over 83,000 followers on X.

SEBI’s allegations against Baap of Chart, its owner

Ansari is accused of offering buying/selling recommendations in the stock market under the “garb of educational courses”.

As per SEBI, he was selling 19 courses related to the securities market, including four that promised guaranteed returns.

“It is observed that Nasir is inducing clients/ investors by assuring profits/ returns of a minimum Rs 3,00,000 and extending to Rs 6,00,000 per month and also giving recommendation to buy,” Bloomberg quoted the market regulator’s order as saying.

SEBI found in its probe that Ansari gave buy/sell recommendations in private groups of his investors/clients, as per the Indian Express report. As per the market regulator, Ansari lured “gullible and uninformed viewers” to join his ‘classes’ by employing “theatrics and showmanship” in his trailer videos on YouTube, and thus “inducing” them to trade in the securities market. It also accused the BoC founder of promising near-certain returns or profits to investors in the securities market if they followed his advice.

India’s market regulator further alleged that the money collected from investors was deposited in the bank accounts of Ansari, BoC, Golden Syndicate Ventures Pvt Ltd and Rahul Rao Padamati. Both Ansari and Rao hold significant shares of Golden Syndicate Ventures, the report added.

SEBI order mentions that @baapofchart collected from than Rs. 17 Crore during the period January 2021 – July 2023 by luring clients and influencing them to deal in securities.#SEBI

— Bar & Bench (@barandbench) October 26, 2023

According to SEBI, four other directors of Golden Syndicate Ventures – Asif Iqbal Wani, Tabraiz Abdullah, Mansha Abdullah and Vamshi Jadhav – were also involved in non-registered investment advisory services. They also received money in their accounts, the regulator alleged.

The regulator alleged that Ansari got Rs 13.78 crore from courses and workshops listed on a platform by Bunch Microtechnologies Pvt Ltd (Bunch) and mobile apps. Another Rs 3.42 crore was collected through two UPI IDs linked to Ansari and BoC’s accounts in Kotak Mahindra Bank.

“…Noticees have collected an amount of Rs 17.2 crore during the period January 2021-July 2023 by luring clients/investors through misleading/ false information to purchase his courses/workshops, adding them in their closed groups and inducing/influencing them to deal in securities,” SEBI said, as per Indian Express.

Incurred losses in stock trading 

A SEBI analysis has revealed that Baap of Chart and its proprietor Ansari lost nearly Rs 3 crore between January 2021 to July 2023 in stock trading.

“Nasir, who claims to provide strategies for trading that would lead to 200-300 per cent profit/assured or near-assured returns, has actually incurred a net loss of Rs 2,89,60,828.02 through trading in securities and has concealed such facts from the investors in his videos/workshops/groups. Therefore, the claim of certainty or near-certainty on returns on his trading calls/ ‘educational videos’ is not supported by his individual record of trading in the securities market,” Moneycontrol cited the SEBI order as saying.

Action against Ansari and others

SEBI has asked Ansari, Rahul Rao, and Golden Syndicate Ventures to “cease and desist from acting as or holding themselves out to be investment advisors, whether using ‘Baap of Chart’ or otherwise”.

They have also been barred from buying, selling or dealing in securities either directly or indirectly. Ansari and the others have to deposit Rs 17.2 crore in an escrow account with a scheduled commercial bank within 15 days.

With inputs from agencies