'Baap Of Chart' And Other Finfluencers Banned By SEBI (Image: YouTube.com/BaapofChart)

The regulator Securities and Exchange Board of India (SEBI) has barred some influencers from the market. ‘Baap of Chart’ owner, Mohammad Nasiruddin Ansari, a finfluencer has been banned, along with Padamati and Golden Syndicate Ventures. The board, SEBI has directed them to stop promoting themselves as investment advisors in the guise of imparting educational information, BQ Prime reported. The SEBI has also ordered the confiscating of over Rs. 17 crore earned as illegal gains.

SEBI, in its investigation found that Mohammad Nasiruddin Ansari, has been indulging in providing stock recommendations in the guise of educational training, without any registration. The move from SEBI has been spurred by the demand from social media platforms, on the need to pin down on finfluencers, who are accumulating revenues through securities trading strategies by providing recommendations to their followers, reported the NDTV. Many of these finfluencers are not registered with SEBI in order to impart such recommendations.

With an interim order, on Wednesday, SEBI barred Baap of Chart’s Nasiruddin Ansari from all actions – buying, selling or any dealing to securities. Another individual, along with a firm, who has been linked to Ansari has also been banned.

In a 45-page interim order the regulatory authority said that a Rs. 17.21 crore has been amassed over just a period of two years through advises on investment, which as per rules are fraudulent and illegal activities. The transactions have been carried out through, as receipt of fees for educational courses, in the case of Nasiruddin Ansari, Padamati and Golden Syndicate Ventures, which are liable for unlawful gains, said the BQ Prime.

In the order, SEBI said that, “it is observed that Nasir is inducing clients/ investors by assuring profits/ returns of a minimum 3,00,000 rupees and extending to 6,00,000 rupees per month and also giving recommendation to buy.” The regulator also said that, the investigation revealed that Nasiruddin Ansari offered guidance and support to people for payment in return of his ‘live market.’

Earlier, in August, SEBI had sought feedbacks from the public on a regulation to bring down the illegal and fraudulent activities of people giving advices on investments and analysis on market movements without SEBI registration. The clampdown has been undertaken amidst the growing popularity of retail investors in stock market.