Scores of investors noticed him on YouTube where he made tall promises of assured returns – sometimes as big as ₹10 crore by investing only ₹one lakh, or a video on ‘how he himself made ₹2 crore in one day’, so on and so forth.
When his wild claims were not enough to impress some investors, his enviable fan base of over 400K on YouTube was enough to lend credibility to his tall claims.
While the man continued to roll, his party just got over with the market regulator cracking down heavily with a heavy hand.
Not only has he now been banned from trading in the securities markets, the gains he made to the tune of ₹17 crore have been impounded and put in an escrow account.
Let us understand how he fleeced investors that drew the attention of markets regulator:
Under the name of Baap of Chart (BoC), Nasir Ansari was fleecing investors in the garb of providing educational training related to the securities market by promising them guaranteed returns.
He was providing investment advisory services without any Sebi registration through social media, thus violating the provisions of Sebi Regulations 2013.
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The action was taken for his videos posted during the period between Jan 1, 2021- July 7, 2023, reads the report submitted by Ananth Narayan G. a whole time member of Sebi.
The regulator observed that Nasir promotes himself as a stock market expert on a number of social media platforms and lured investors to enrol for various educational courses offered by him and recommends them to invest in the securities market and earn profit.
Assured returns in the name of educational courses
He uploaded educational courses on apps/ portal through the services provided by ‘Bunch’ wherein he was collecting money for enrolment in the said courses, and provided access to classes to investors.
The money collected for educational courses was credited into the bank accounts of Nasir, Baap of Chart, Golden Syndicate Ventures (in which he is a large shareholder) and P Rahul Rao (another shareholder of Golden Syndicate Ventures).
A number of complaints were received by Sebi wherein investors were lured into buying courses in return of assured returns of a minimum ₹3 lakh and further extendable to ₹6 lakh per month, and gave them scores of recommendation to buy.
Nasir also used to promise dedicated support and guide for live market transactions upon payment of courses.
So, the regulator noted that under the garb of providing courses related to markets, he was explicitly giving recommendations and promising assured returns without being a registered investment advisor.
Misleading videos on video streaming platform
The regulator observed that the videos were in the nature of promising quick and consistent returns through trading.
For instance, in one video (Bas 5 minutes me Sureshot Profit Kro), he explained one strategy which he claims to have an accuracy of 80-90 percent and if hedged, the accuracy increased to 90 percent.
The Sebi investigation has discovered that Nasir even suffered a loss of nearly ₹3 crore in trading in the securities market during the past 2.5 years, which he has concealed from his clients/ investors.
During a period of two years, a total of over ₹17.20 crore have been accumulated from carrying out fraudulent advisory activities, which will now be impounded and put in an escrow account.
Sebi had issued instructions preventing them from holding themselves out to be investment advisors whether using ‘Baap of Chart’ or otherwise.
They will not be allowed to undertake such activity or any other unregistered or fraudulent activity. The proceeds in the bank accounts to the extent of illegal gains will also be impounded.
Read More: Sebi bans Baap of Chart from securities market, orders refund of ₹17.20 crore in unlawful gains
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Updated: 26 Oct 2023, 05:04 PM IST