The not-so-famous Mohammad Nasiruddin Ansari, or Baap of Chart has been given orders to deposit a sum of Rs 17.20 crore in an escrow account. The same sum of amount has been collected from carrying out fraudulent and unregistered illegal advisory services. Mohammad Nasiruddin Ansari has also been detained from accessing the securities market until further orders are released.
Securities and Exchange Boards of India has passed an interim order for the prevention of the continuation of unregistered or fraudulent actions for retaining and impounding quantified illegal gains, considering the interest of investors.
About Mohammad Nasiruddin Ansari
Mohammad Nasiruddin Ansari is the sole person who runs the firm Baap of Chart (BoC). He flaunts his abilities as a stock market expert and invites clients and investors to enroll in various educational courses that he offers. He is present on various social media platforms.
How did Ansari work?
As per SEBI, Ansari provided recommendations of stock through BoC on various platforms such as Telegram, WhatsApp, Instagram, and X, formerly Twitter. Ansari was selling a total of 19 courses including courses that claimed it would give assured returns to the promised investors.
As per the investigation by SEBI, Ansari also offered sell-and-buy recommendations to private groups of clients and investors.
Decoding the Orders By SEBI
On October 25, 2023, the order was passed by the market regulator, SEBI which noticed Golden Syndicate Ventures Pvt. Ltd. And Rahul Rao Padamati along with Mohammad Nasiruddin Ansari to abstain from dealing, selling, or buying the securities either indirectly or directly.
The order says that, if the above-mentioned entities have opened themselves to any exchange-traded derivative contracts then they can square off or close out such open positions within 3 months. However, the entities are entitled to settle the pay-out and pay-in obligations concerning transactions.
As per the order, prima facie Rs 17,20,76,616.09 has been collected during the two years of fraudulent and unregistered activities of investment advisory. Golden Syndicate Ventures Pvt. Ltd. And Rahul Rao Padamati along with Mohammad Nasiruddin Ansari have gained unlawful gains directly in their bank accounts in the name of educational courses.
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Thus, these three entities are liable to be engaged in fraudulent activity. The order added, “Considering the factual matrix of the case and the prima facie conclusion of fraudulent and unregistered investment advisory activities, I am convinced that the balance of convenience lies in passing interim directions against Notices Nos. 1, 2 and 5 (Golden Syndicate Ventures Pvt. Ltd. And Rahul Rao Padamati along with Mohammad Nasiruddin Ansari) inter alia 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.”