SEBI Initiates Recovery Proceedings Against ‘Baap of Chart’
The Securities and Exchange Board of India (SEBI) has initiated recovery proceedings to collect Rs 18.14 crore from Mohd Nasiruddin Ansari, popularly known as ‘Baap of Chart’, Rahul Rao Padamati, and Golden Syndicate Ventures for running unregistered investment advisory services.
The amount includes penalties, interest, costs, and other charges as per SEBI’s earlier directions. Despite a demand notice issued in May requiring payment within 15 days, the dues remain unpaid. SEBI subsequently froze all demat and bank accounts, mutual fund holdings, and restricted access to lockers in July to prevent asset concealment.
Background of the Case
The case dates back to December 2024, when SEBI restrained seven entities, including Ansari, for up to one year and ordered them to refund Rs 17.2 crore collected through unauthorized advisory services. Ansari, who operated under the name ‘Baap of Chart’ on social media platform X, allegedly offered stock recommendations disguised as educational training.
For more information on unregistered investment advisers and the risks associated with them, please visit our website.
SEBI’s Order and Its Implications
SEBI’s order prohibits the defaulters from disposing, transferring, alienating, or charging all immovable properties and movable properties held by them. The regulator also directed the entities to refund Rs 17.2 crore within three months.
Ansari’s profile on the social media platform X, where he used to offer buy/sell recommendations in the stock market, has been under scrutiny. The recommendations were given in the garb of providing educational training related to the securities market, according to SEBI.
For updates on the Indian stock market and the latest news on SEBI’s actions against unregistered investment advisers, please visit our website.
Impact on Investors and the Stock Market
The SEBI’s action against ‘Baap of Chart’ and others is a significant step towards protecting investors from unregistered investment advisers. It highlights the importance of investment advisory services being registered with SEBI and the need for investors to be cautious when dealing with unregistered entities.
For more information on SEBI guidelines and the regulations governing investment advisory services, please visit our website.
Conclusion
In conclusion, SEBI’s action against ‘Baap of Chart’ and others is a significant step towards protecting investors and maintaining the integrity of the Indian stock market. Investors should always be cautious when dealing with unregistered entities and ensure that they are dealing with registered investment advisers.
For the latest updates on the stock market news and SEBI’s actions against unregistered investment advisers, please visit our website.