Indian finfluencer to refund 172 million rupees to followers in latest crackdown

INDIA’S market regulator has barred a popular influencer on social media from securities trading and ordered him to refund 172 million rupees (S$2.8 million) 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 (Sebi) follows a growing clamour on social media platforms such as 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 on Wednesday (Oct 25), the regulator banned Mohammad Nasiruddin Ansari – who operated on social media under “Baap of Chart” – from buying, selling or dealing in securities. It also barred an individual and a firm linked to Ansari. 

He was not immediately available for comment.

“Ansari is inducing clients/investors by assuring profits/returns of a minimum 300,000 rupees and extending to 600,000 rupees per month, and also giving recommendations to buy,” Sebi said. The regulator added that he 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 the rising popularity of stocks among Indian retail investors. BLOOMBERG