The Securities and Exchange Board of India (Sebi) has issued a recovery order to recover Rs 18.41 crore from the operators of ‘Baap of Chart’, an unregistered investment advisory platform that had gained massive popularity on social media. The recovery order names Mohammad Nasiruddin Ansari, Rahul Rao Padamati and Golden Syndicate Ventures Pvt Ltd as the main defaulters.
The recovery amount includes penalties, interest and enforcement costs imposed on these entities for violating the Sebi (Investment Advisers) Regulations. Earlier, Sebi had directed them to refund the money collected from investors and stop offering unregistered advisory services. However, the directions were ignored, prompting the regulator to issue the recovery orders and enforcement.
Along with the Rs 18.41 crore recovery order, Sebi has issued additional recovery notices against individuals linked to the case. Mohammad Nasiruddin Ansari faces a penalty demand of Rs 21,21,000. Similarly, Jadav Vamsi has been directed to pay Rs 12,36,553, while Rahul Rao Padamati has been served a separate notice for Rs 2,19,000.
Also read: Sebi raids trading guru Avadhut Sathe’s Karjat Academy in crackdown on finfluencers
A Notice of Demand was issued on May 29 this year, followed by a Notice of Attachment on July 8, freezing bank and demat accounts of the accused. With dues still unpaid, Sebi has now invoked its powers under the SEBI Act to recover the amounts. If payments are not made voluntarily, the regulator can proceed with selling attached assets, initiating property auctions to collect the dues.
The Baap of Chart case is one of the prominent examples of Sebi’s crackdown on unregistered investment advisers who operate without regulatory approval. In 2023, Sebi imposed monetary penalties and ordered refunds after finding that the operators of this platform were offering stock market tips and investment strategies without registration. These services, often promoted aggressively on social media, pose significant risks to retail investors by operating outside regulatory oversight.
In the final order, passed in December last year, the Sebi WTM said that Mohammad Nasiruddin Ansari "recklessly" and "misleadingly" offered assured returns to clients and hid trading losses of Rs 2.89 crore incurred over two years between January 2021 and July 2023.
As per the December, Sebi WTM order, without holding any registered Investment Advisor certificate, Nasir Ansari, provided investment advisory services and promised unrealistic returns to investors with the objective of raising money through course fees. The fact that Ansari made losses by trading in the securities market, meant that he was aware that it is impossible to deliver such returns. Despite this, false promises of unrealistic assured returns using trading strategies were made to investors and clients. The theatrics and showmanship in the trailer videos on YouTube issued by Ansari also appear to be aimed at creating illusion of unnatural returns by drawing in gullible and uninformed viewers to join his ‘classes’ thereby inducing them to trade in the securities market.
Also read: ‘We don’t give tips’: Avadhut Sathe responds after SEBI search at Karjat academy
The latest recovery move underscores Sebi’s determination to protect investors and enforce compliance. Strong regulatory action sends a clear message to those engaged in illegal advisory practices that the regulator will not hesitate to use its full enforcement powers.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
