SEBI Bars Influencer from Securities Trading, Orders Rs 17.2 Crore Refund

SEBI Bars Influencer from Securities Trading, Orders Rs 17.2 Crore Refund

VoM News Desk | October 26, 2023 | 02:10 PM IST | Breaking News | Follow on Google News

SEBI Bars Influencer from Securities Trading, Orders Rs 17.2 Crore Refund

SEBI Bars Influencer from Securities Trading, Orders Rs 17.2 Crore Refund

Regulatory Action Against a Social Media Influencer

The Securities and Exchange Board of India (SEBI) has taken decisive action against a prominent social media influencer, ordering the individual to cease securities trading and mandating the refund of Rs 17.2 crore rupees collected from their followers. The regulatory body’s investigation revealed that the influencer had been offering stock recommendations under the guise of providing educational training.

Crackdown on “Finfluencers”

The move by SEBI is part of a wider effort to address concerns about the proliferation of “finfluencers” on social media platforms, such as X (formerly known as Twitter). There has been a growing clamor for regulatory oversight amid concerns over the veracity of claims made by these individuals regarding their ability to generate profits through trading strategies communicated to their followers.

SEBI’s Interim Order

In an interim order issued on a Wednesday, SEBI barred Mohammad Nasiruddin Ansari, who operated on social media under the moniker “Baap of Chart,” from engaging in the purchase, sale, or dealing of securities. The regulatory body also extended these restrictions to an individual and a firm associated with Ansari.

Operational Practices Under Scrutiny

SEBI highlighted that Ansari had been enticing clients and investors by guaranteeing minimum profits and returns, ranging from 3,00,000 rupees to 6,00,000 rupees per month. Furthermore, the investigation revealed that Ansari provided recommendations for stock purchases and offered support and guidance to those who paid for “live market” transactions.

Public Feedback on Regulatory Measures

It’s noteworthy that in August, SEBI sought public input on regulations aimed at curbing the activities of investment advisers and market analysts who were not registered with the regulatory authority. The crackdown on finfluencers and unregistered financial influencers comes as stocks gain popularity among Indian retail investors.

This regulatory action by SEBI is a significant step towards maintaining the integrity and security of the financial markets in India.

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VoM News Desk

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