Baap of Chart asked to refund over Rs 17 crore in fee, banned from securities market

The order has been passed against illegal advisory service

The infamous Baap of Chart, Mohammad Nasiruddin Ansari, has been asked to deposit over Rs 17.20 crore in an escrow account collected from carrying out unregistered and fraudulent illegal advisory service.

He has also been restrained from accessing the securities market until further orders.

The regulator has passed an interim order to prevent "the continuation of any further fraudulent or unregistered activities in the interest of investors, and for impounding and retaining such quantified alleged illegal gains".

In an order passed on October 25, the Securities and Exchange Board of India said, “Noticee Nos. 1 (Mohammad Nasiruddin Ansari), 2 (Rahul Rao Padamati) and 5 (Golden Syndicate Ventures Pvt. Ltd. ) are restrained from buying, selling or dealing in securities either directly or indirectly, in any manner whatsoever until further orders. If Noticee Nos. 1, 2 and 5 have any open position in any exchange traded derivative contracts, as on the date of this Order, they can close out / square off such open positions within 3 months from the date of this Order or at the expiry of such contracts, whichever is earlier. The said Noticee Nos. 1, 2 and 5 are permitted to settle the pay-in and pay-out obligations in respect of transactions, if any, which have taken place before the close of trading on the date of this Order.”

The order stated that prima facie Rs 17,20,76,616.09 (Rupees Seventeen Crore Twenty Lakh Seventy Six Thousand Six Hundred Sixteen and Nine Paisa) has been accumulated during a period of just over two years from carrying out investment advisory activities which are both unregistered and fraudulent.

"In view of receipt of fees for ‘educational courses’ directly in their bank accounts, prima facie it is concluded that the aforesaid Noticee Nos. 1, 2 and 5. are jointly and severally liable for alleged unlawful gains... Considering that the Noticee Nos. 1, 2 and 5 have wantonly engaged in perpetrating fraudulent activity, I cannot ignore the risk that the said Noticees may divert the alleged unlawful gains before directions for disgorgement / refund, etc., if any, are passed. Further, I note that in his videos/ social media posts on ‘courses’ of BoC, Nasir repeatedly emphasizes on providing access to live trading during his courses. Therefore, non-interference at this stage would result in irreparable injury to interests of the securities market and the investors," the order read.

"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 the Noticee Nos. 1, 2 and 5 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," it added.

Moneycontrol had reported on Nasir promising unrealistic returns in March.

(This is a developing story. Please come back for more updates.)