Finfluencer Nasir Ansari Scam: The ‘Baap of Charts’ Controversy

Mohammad Nasiruddin Ansari, popularly known as Nasir Ansari, is a self-proclaimed stock market expert who gained fame as a financial influencer or “finfluencer” on social media platforms. He operated under the brand name “Baap of Chart” (BoC), which translates to “Father of Charts” in English, positioning himself as a guru in stock market analysis and trading.

Nasir Ansari’s early life paints a picture of humble beginnings. Born in a small village in Jharkhand, he was the son of a rickshaw puller. Despite being a brilliant student, financial constraints forced him to quit college to earn money. His journey into trading was marked by initial losses and setbacks before he claimed to have found success.

Fraud Name

The fraud associated with Nasir Ansari is commonly referred to as the “Baap of Chart” scam, named after his online persona and business.

Scam / Fraud Year

The fraudulent activities primarily took place between January 2021 and July 2023, as investigated by the Securities and Exchange Board of India (SEBI).

Total Scam / Fraud Amount

SEBI ordered Ansari to disgorge Rs 17.2 crore (approximately $2.1 million USD), which represents the amount he allegedly collected from investors through his fraudulent activities.

Also Read: P R Sundar Scam: From Math Teacher to Controversial Finfluencer

Modus Operandi

Ansari’s modus operandi was sophisticated and multi-faceted:

1. Social Media Presence: He built a significant following on various platforms, including 4.43 lakh subscribers on YouTube and 78,000 followers on X (formerly Twitter).
2. Educational Facade: Ansari offered 19 “educational courses” related to the securities market, four of which promised assured returns.
3. Stock Recommendations: Under the guise of education, he provided buy/sell recommendations for stocks across social media platforms.
4. Closed Groups: Investors were added to private groups where they received personalized trading advice.
5. False Promises: Ansari claimed to have strategies that could lead to 200-300% profits with 95% accuracy.
6. Multiple Platforms: He utilized YouTube, X, Instagram, WhatsApp, and Telegram to reach a wide audience.
7. Physical Workshops: In addition to online courses, Ansari organized in-person workshops in various cities.

How Was the Nasir Ansari Scam Uncovered?

The scam came to light through a SEBI investigation, which revealed several discrepancies:

1. Trading Losses: Contrary to his claims of high profits, SEBI found that Ansari had incurred a net trading loss of Rs 2.89 crore from January 2021 to July 2023.
2. Unregistered Advisory: Ansari was providing investment advice without being registered with SEBI as an investment advisor.
3. Misleading Information: The investigation uncovered that Ansari was luring clients through false and misleading information.
4. Financial Trail: SEBI traced the money collected from investors to various bank accounts associated with Ansari and his associates.

Arresting the Mastermind behind the Scam

As of the latest available information, there have been no reports of Nasir Ansari’s arrest. However, SEBI has taken significant regulatory action against him and his associates.

The current situation regarding the “Baap of Chart” case is as follows:

1. Market Ban: SEBI has barred Nasir Ansari from the securities market for one year.
2. Financial Penalties: Ansari has been fined Rs 20 lakh, in addition to the disgorgement order of Rs 17.2 crore.
3. Associates Penalized: Six other individuals associated with Ansari have been banned from the market for six months and fined Rs 2 lakh each.
4. Refund Order: SEBI has directed Ansari and his associates to refund Rs 17.2 crore to investors within three months.
5. Cease and Desist: All entities involved have been ordered to stop acting as or representing themselves as investment advisors.
6. Ongoing Scrutiny: This case has highlighted the need for increased regulation of finfluencers, with SEBI actively cracking down on unauthorized investment advisors.

The “Baap of Chart” scandal serves as a cautionary tale for investors and a reminder of the importance of due diligence when seeking financial advice, especially from social media influencers. It also underscores the regulatory challenges posed by the rise of finfluencers in the digital age.