SEBI orders financier ‘Father of Charts’ to refund fees charged to investors

Amid the growing influence of financial influencers, capital market regulator Sebi has cracked down on social media influencer Baap of Charts, popular in the trading community, and asked its operators to refund investors who availed the advisory services.

In its order, the regulator banned Naseeruddin Ansari and his associates, who operated the Baap of Charts platform, from entering the securities market for allegedly providing unregistered investment advisory services and violating market rules.

SEBI directed Ansari and associates to open an escrow account and deposit Rs. 17 crores has also been asked to be deposited, which will be used only to refund the investors/complainants who availed the investment advisory services.

Payment to investors will be made through bank transfer only with audit trails to identify the beneficiaries of the payment.

The regulator further said that Baap of Charts and associates will issue a public notice in local language in all editions of two national newspapers (one English and one Hindi) and one local newspaper with wide circulation, detailing the procedure for claiming refund. , including contact person details such as name, address and contact details. This should be done within 15 days of the order.

Also Read: SEBI clears Sriram Properties CMD Murali Malayappan for indirect acquisition

Nasir, widely followed for his trading insights and online courses, operated a platform through social media channels including Telegram and used it to promote paid courses and trading strategies.

According to SEBI, these activities crossed the line into unauthorized investment advisers, as the recommendations given were specific and geared to lure investors with promises of substantial returns. The platform allegedly extorted Rs. 17.2 crore fee was collected.

Despite presenting itself as an educational initiative, the platform provided accurate trading recommendations and lured clients with claims of high profitability, which were not supported by its actual trading performance.

SEBI has now ordered to freeze the bank accounts of those involved. The regulator asserted that offering investment advice without registration was a violation of norms, highlighting concerns that such activities could mislead investors and undermine the integrity of financial markets.