SEBI banned three organizations from the securities market and ordered impoundment of unlawful earnings of nearly Rs 17 crore. The organizations earned around Rs 17.21 crore in two years via unregistered and fraudulent investment advice services.
SEBI has blacklisted three entities from the securities market and ordered the impoundment of unlawful gains worth over Rs 17 crore in connection with ‘Baap of Chart’ investment advisory services.
Mohammad Nasiruddin Ansari, a financial genius, recommended stocks as ‘Baap of Chart’ on X and Telegram. SEBI said the recommendations were disguised as securities market education.
Besides Ansari, Padamati and Golden Syndicate Ventures are excluded from securities markets until further orders. SEBI ordered them to stop utilizing ‘Baap of Chart’ or otherwise posing as investment counselors.
SEBI identified Rs 17.21 crore accrued over two years from unregistered and fraudulent investment advice activities in its 45-page interim ruling cum show cause notice.
For interim purposes, the regulator found Nasir, Padamati, and Golden Syndicate Ventures jointly and severally accountable for claimed unlawful gains because they received money for ‘educational courses’ directly in their bank accounts.
“I can’t disregard the potential that Nasir, Padamati, and Golden Syndicate may divert alleged unlawful gains before disgorgement/refund orders are issued.
“Moreover, in his videos/social media posts on ‘courses’ of Baap of Chart, Nasir repeatedly emphasizes providing access to live trading during his courses,” SEBI’s full-time member Ananth Narayan G ordered.
The order states that non-interference at this time would irreparably harm the securities market and investors.
“I am convinced that the balance of convenience lies in passing interim directions against them for preventing the continuation of any further fraudulent or unregistered activities in the interest of investors, and for impounding and retaining such quantified alleged illegal gains,” Ananth said.
They violated PFUTP and Investment Adviser (IA) rules by engaging in such practices. The regulator also ordered Nasir, Padamati, Tabraiz Abdullah, Asif Iqbal Wani, Golden Syndicate Ventures, Mansha Abdullah, and Jadav Vamshi to disgorge Rs 17.21 crore obtained from clients/investors through unregistered investment advice services.
The markets watchdog also ordered them to stay away from securities markets for a while. After SEBI examined certain tweets on X and Telegram, Nasir was found to be making buy/sell recommendations in the name of ‘Baap of Chart’ while claiming to provide securities market education.
The agency then investigated Nasir to determine if he was offering investment advising services without Sebi registration via social media or other ways, violating regulatory requirements. The case is under review from January 2021 until July 2023.
Conclusion
Three entities have been ordered by SEBI to impound unlawful securities market gains worth over Rs 17 crore. Muhammad Nasiruddin Ansari, an investment genius, gave stock recommendations as ‘Baap of Chart’ on X and Telegram and purportedly taught securities market basics. Padamati and Golden Syndicate Ventures are banned from securities markets until further order. SEBI found Rs 17.21 crore from unlicensed and fraudulent investment advice activities over two years. Nasir, Padamati, Tabraiz Abdullah, Asif Iqbal Wani, Golden Syndicate Ventures, Mansha Abdullah, and Jadav Vamshi must disgorge Rs 17.21 crore obtained from clients/investors through unregistered investment advice operations, according to the regulator.
