Indian finfluencer to refund $2.1 million to followers in latest crackdown

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MUMBAI, Oct 26, (Agencies): India’s market regulator has taken action against a prominent social media influencer, barring him from trading securities and ordering a refund of Rs172 million ($2.1 million) collected from his followers. The move by the Securities and Exchange Board of India (SEBI) came after an investigation revealed that the influencer, operating under the name “Baap of Chart,” was providing stock recommendations under the guise of educational training.

SEBI’s action follows increasing concerns on social media, including platforms like X (formerly known as Twitter), regarding the credibility of so-called “finfluencers” who claim to generate profits through trading strategies they share with their followers.

In its interim order, SEBI prohibited Mohammad Nasiruddin Ansari, along with an associated individual and firm, from engaging in the buying, selling, or dealing of securities. According to SEBI, Nasir was enticing clients and investors by promising minimum returns of Rs3,00,000 to Rs6,00,000 per month. The regulator’s investigation also revealed that Nasir provided guidance and recommendations to those who paid for his “live market” transactions.

As of now, Nasiruddin Ansari has not provided any comments on the matter. SEBI had previously sought public input on a regulation aimed at curbing the activities of unregistered investment advisers and market analysts. The regulator’s actions align with the growing interest in the stock market among retail investors in India.

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