Market Regulator SEBI has issued an order to recover ₹ 18.41 crore from operators of ‘Baap of Chart’, an ungorningist investment advisory platform. This platform was quite popular on social media. In this order, Mohammad Naseeruddin Ansari, Rahul Rao Padmati and Golden Syndicate Ventures Private Limited have been nominated as the main defaulters.
This recovery amount included fines, interest and cost of investigation, which was implemented due to violation of SEBI (Investment Advisers) Regulations. Earlier, SEBI had instructed them to return the money from investors and close the unregistered advisory services. But they ignored it, so SEBI took the recovery order and legal action.
Notice given to pay fine
Along with the recovery order of ₹ 18.41 crore, additional notices have also been issued against other persons associated with the case. Mohammad Naseeruddin Ansari has received an order to pay a fine of ₹ 21,21,000. At the same time, a notice of ₹ 12,36,553 and ₹ 2,19,000 has been issued to Jadav Vamsi and ₹ 2,19,000 to Rahul Rao Padmati.
Apart from this, on May 29, SEBI issued a demand notice and attachment notice on 8 July, freezing the bank and demat account of the accused. Due to non -payment so far, SEBI has initiated recovery action using its rights. If the accused have not paid their will, SEBI may take steps to sell or auction their properties.
What causes SEBI to take action?
The ‘Baap of Chart’ case is one of the major actions of SEBI, where unregistered investments were targeted. In 2023, SEBI found that the operators of this platform were offering stock market tips and investment strategy without registration. The publicity of these services on social media was quite risky for retail investment.
In December last year, SEBI WTM said in the order that Mohammad Naseeruddin Ansari gave the customers a false confidence of ‘better returns’ and hid the trading loss of ₹ 2.89 crore between January 2021 and July 2023. Ansari gave investment advice without registration certificate and promised ‘heavy returns’ to raise money through course fees. The purpose of his YouTube trailer video was also stuck in their nets and provoked trading in the market.
Trading guru was also tightened
Recently, SEBI conducted a big search operation against market influencer and trading guru Avadhoot Sathe in Mumbai. Sathe’s YouTube channel has reached 9.37 lakh subscribers, where they share market analysis, chart patterns and investment strategies.
SEBI raided his Karjat Trading Academy for two days. Because some of his programs and classes were received that they could mislead retail investors in collaboration with the operators promoting Penny Stocks. Kamlesh Varshney, the full time member of SEBI, had said that this action is part of the comprehensive campaign to strengthen market discipline and its purpose is to create fear among those who do wrong things.