In a bold move to protect investors and maintain the integrity of the securities market, the Securities and Exchange Board of India (Sebi) has taken a significant step by barring financial influencer Mohammad Nasiruddin Ansari, popularly known as 'Baap of Chart' in the digital sphere. With his online presence as 'Md Nasir,' Nasir had built a substantial following on social media platforms. He had over 443,000 subscribers on YouTube and 83,000 followers on what was formerly known as Twitter, 'X.'
Sebi's action comes in response to Nasir's engagement in unregistered investment advisory activities. Not only has Nasir been barred from participating in the securities market, but Sebi has also called upon him to disgorge an amount of Rs 17.2 crore.
The market regulator's investigation revealed that Nasir presented trading recommendations disguised as educational courses, which he charged for. It is alleged that Nasir misled clients and investors with false information to entice them into purchasing his courses and workshops.
What makes this case all the more concerning is that Sebi's investigation unearthed a stark contrast between Nasir's claims and reality. While Nasir promised 20-30 percent profits with 95 percent accuracy, the investigation showed that he had incurred a net trading loss of Rs 2.89 crore from January 2021 to July 2023. He concealed these losses from the investors in his videos, workshops, and groups.
Sebi has not only directed Nasir but also two others involved in the case to deposit the impounded amount in an escrow account within 15 days. In addition, they are prohibited from diverting any funds collected from investors. Furthermore, they have been instructed to remove all advertisements and promotions related to their courses.
While Nasir and his associates have been banned from the securities market until further notice, Sebi has given them a window of three months or until the expiry day, whichever is earlier, to square off their open positions.
"Investors and clients were assured that upon payment of the consideration or subscription amount, Nasir would provide dedicated support and personal guidance, reaching out to them one by one," Sebi highlighted in its statement.
Sebi's decisive action against Nasir serves as a strong reminder that unscrupulous practices in the financial advisory space will not go unchecked. This shows that Sebi is dedicated to protecting investors and making sure the stock market is open and fair. This situation reminds us to be careful and do our homework when listening to financial advice, especially on the internet.