Meet Mohammad Nasiruddin Ansari, Brain Behind Baap Of Chart, Who Got Banned By SEBI

New Delhi: In a significant move, the Securities and Exchange Board of India (SEBI) has taken a strict stance against social media influencer Mohammad Nasiruddin Ansari, popularly known as the 'Baap of Chart.' SEBI's recent actions include banning Ansari from participating in the securities market and imposing a substantial fine of Rs 17.2 crore. This development sheds light on the risks associated with unregistered investment advisory activities and raises questions about the responsibilities of social media influencers in the financial sector.

Who is Mohammad Nasiruddin Ansari?

Ansari, the sole proprietor of 'Baap of Chart' (BoC), presented himself as an investment expert on various social media platforms. He attracted investors and clients to enroll in various "educational courses" he offered. Crucially, Ansari allegedly promised investors almost certain returns if they followed his stock recommendations in the securities market.

The Modus Operandi

SEBI's investigation uncovered that Ansari was dispensing stock recommendations for buying and selling through 'Baap of Chart' across various social media platforms, including YouTube, X (formerly Twitter), Instagram, WhatsApp, and Telegram. He encouraged investors to sign up for his "educational courses" via a website and apps provided by Bunch Microtechnologies Pvt Ltd. Within this platform, students could interact with "tutors" in real-time, sharing information, documents, and content. Furthermore, Ansari reportedly provided buy/sell recommendations in private groups of his investors and clients.

Financial Figures

The investigation revealed that Ansari collected Rs 13.78 crore from the courses and workshops listed on the Bunch platform and mobile apps. This entire amount was considered fees received from fraudulent and unregistered investment advisory activities, according to SEBI. Additionally, Rs 3.42 crore was collected through two UPI IDs linked to Ansari and BoC's accounts in Kotak Mahindra Bank. These UPI IDs were publicized on the website and social media channels.

SEBI's Response

In its interim order, SEBI accused Ansari and BoC of attempting to portray their advisory activities as educational in nature, while their primary objective was financial gain. The order stated that the theatrical and deceptive elements in the YouTube videos issued by Ansari and BoC aimed to create an illusion of extraordinary returns, attracting gullible viewers and inducing them to trade in the securities market. SEBI believes that at its core, the activity was fraudulent, and it appeared that Ansari and BoC were seeking to make a quick profit by luring individuals into trading on their advice and recommendations.

The Broader Implications

This case underscores the importance of regulating social media influencers who provide financial advice. It highlights the need for clear rules and guidelines in the digital age, where individuals can easily reach a vast audience with potentially misleading or fraudulent information. SEBI's actions serve as a warning to those who misuse their influence to engage in unregistered investment advisory activities.