Market regulator SEBI barred a popular influencer on social media from securities trading and ordered him to refund Rs 17.2 crore rupees collected from followers after its investigation found he gave stock recommendations in the garb of providing educational training.
The action by the Securities and Exchange Board of India follows a growing clamor on social media platforms like X, formerly known as Twitter, for a crackdown on so-called finfluencers amid concerns over the viability of their claims of making profit through trading strategies that they communicate to their followers.
In an interim order Wednesday, the regulator banned Mohammad Nasiruddin Ansari, who operated on social media in the name of "Baap of Chart," from buying, selling or dealing in securities. It also barred an individual and a firm linked to Ansari.
Ansari was not immediately available for comment.
"It is observed that Nasir is inducing clients/ investors by assuring profits/ returns of a minimum 3,00,000 rupees and extending to 6,00,000 rupees per month and also giving recommendation to buy," Sebi said in the order. The regulator added that its investigation found Nasir would offer support and guidance to those who paid him for 'live market' transactions.
In August, the regulator sought comments from the public on a regulation that will thwart the activities of investment advisers and market analysts who are not registered with it. Sebi's crackdown comes amid rising popularity of stocks among Indian retail investors.
Featured Video Of The Day
Canada Rolls Back Extra Screening For Fliers To India Days After Announcing It
Sebi Proposes Accountability For AI Use By Market Infra Institutions, Intermediaries Market Regulator SEBI Orders Attachment Of Bank Accounts Of Videocon Founder Venugopal Dhoot To Recover Dues Finfluencer Sharan Hegde Lays Off 15% Staff, Explains Reasons: "Irony Isn't..." Amazon Employee Greets Friend At Wedding, Dies Of Cardiac Arrest Indian Student In US Accidentally Shoots Himself Dead While Celebrating Birthday "Thousand Times Better...": Delhi Lt Governor's Praise For AAP's Atishi Sweden Says Won't Be Intimidated By Putin's Warning To West Karishma Tanna Shares Her Secret Hacks To Prevent Hair Fall 'Odisha Had No Dealings With Adani Group': BJD Rejects US Charge Track Latest News Live on NDTV.com and get news updates from India and around the world.