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SEBI Bans These 3 Entities From Securities Market Over Unregistered Investment Advice – News18

Curated By: Business Desk

Last Updated: October 26, 2023, 14:38 IST

The ban from the securities market will be valid until further orders.

SEBI has also asked the entities to deposit over Rs 17.20 crore in an escrow account for carrying out unregistered and fraudulent illegal advisory services.

In an interim order, the Securities and Exchange Board of India (SEBI) banned Mohammad Nasiruddin Ansari aka Baap of Chart for providing unregistered investment advice under the “garb” of education on Wednesday. The market regulator said that it has observed that Nasir is inducing clients/ investors by assuring profits/ returns of a minimum of Rs 3,00,000 and extending to Rs 6,00,000 per month and also giving recommendations. “Further, it is also stated that upon payment for courses, Nasir will give dedicated support and guidance to everyone personally for live market transactions,” the market regulator noted. SEBI also noted that under the garb of providing courses related to the securities market, Nasir has been providing recommendations to clients in private group chats and has lured investors or clients to invest in the securities market by assuring returns.

SEBI has also asked Ansari, Rahul Rao Padamati and Golden Syndicate Ventures Pvt Ltd to deposit over Rs 17.20 crore in an escrow account for carrying out unregistered and fraudulent illegal advisory services. The three have also been restrained from accessing the securities market until further orders.

In the order, the SEBI whole-time Member Ananth Narayan said that an evaluation of Nasir’s activities had to be done to see if he was giving advice and inducement to trade couches as offline and online education. Nasir’s online and offline activities were evaluated.

According to Money Control, under offline activities, a workshop conducted by Nasir and the video of the workshop is posted on YouTube, titled “Rs. 80,000/- Profit in live trading with 500+ students”. Under the online activities, the regulators went through the websites and apps his team manages.

Razorpay being the payment aggregator was also asked by SEBI to provide information about the entities operating the websites under investigation. The aggregator informed the regulator that Bunch Microtechnologies Private Limited was the merchant for the aforementioned links. It also mentioned that Bunch had onboard Baap of Chart as a content creator.

Upon this, Bunch told SEBI that it provides application services to educators, tutors, and content creators and that the tutor may opt for the creation of an application and/ or web page to list their courses. The tutor’s students can purchase such courses from the application for educational purposes.

The payment transactions made by students are done through Razorpay. Bunch also highlighted that the tutor has the freedom to create chat groups and delete them as required, and add or modify any parameters of the chat as well.

The regulator observed through chats that Nasir is providing buy, sell or hold recommendations in securities to his clients/ investors under the grab of education related to the security market.

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