SEBI Seizes Properties to Recover ₹18.14 Cr from “Baap of Charts”.

SEBI Launches ₹18.14 Crore Asset Freeze, Property Seizure Against ‘Baap of Charts’ Finfluencer in Major Crackdown

SEBI freezes assets and seizes properties to recover ₹18.14 crore from finfluencer ‘Baap of Charts’ and associates for unregistered advisory services. The crackdown follows their failure to refund investors or comply with penalties, signalling a major regulatory escalation against digital financial fraud.

The Securities and Exchange Board of India (SEBI) has initiated stringent recovery proceedings to seize ₹18.14 crore from finfluencer Mohammad Nasiruddin Ansari, known as ‘Baap of Charts’, and his associates. This decisive action follows their repeated failure to comply with earlier orders to refund investors and pay penalties for running unregistered investment advisory services. The regulator has now frozen all bank accounts and prohibited the sale of any properties owned by the defaulters.

The total recoverable amount comprises penalties, interest, and costs. Individually, ₹21.21 lakh is due from Ansari and ₹2.13 lakh from his associate Rahul Rao Padamati. A joint liability of ₹17.90 crore has been levied on them along with Golden Syndicate Ventures Pvt Ltd. SEBI issued a final demand notice in May 2025, which went unpaid, prompting escalated enforcement.

Asset Attachment and Deepening Non-Compliance

In July 2025, SEBI’s Recovery Officer issued an attachment order to prevent asset dissipation. This action froze all bank and demat accounts, mutual fund holdings, and restricted locker access. However, the sums recovered from these accounts were insufficient to cover the massive dues. Consequently, a prohibitory order was passed on December 15, 2025.

The latest order legally bars Ansari, Padamati, and Golden Syndicate Ventures from selling or transferring any movable or immovable properties. This includes land, buildings, vehicles, and other assets. All persons are prohibited from benefiting from any such transaction involving the defaulters’ properties. The defaulters have also been directed to furnish complete property details and original title deeds within two weeks.

The case for stricter measures was strengthened by non-compliance with a Securities Appellate Tribunal (SAT) order. In September 2025, SAT directed Padamati to deposit 50% of ₹1.2 crore within four weeks, an order he failed to obey.

The Original Scheme: ‘Education’ Masking Unregistered Advisory

The recovery stems from a SEBI final order in December 2024 against seven entities. They were directed to jointly refund ₹17.2 crore collected from investors within three months and were barred from market access. SEBI found that Ansari operated an unregistered investment advisory service through his ‘Baap of Charts’ social media brand.

He offered specific stock buy/sell recommendations disguised as ‘educational training’. Investors were lured into paid courses and private groups with promises of high or near-assured returns. An examination of his personal trading records revealed a devastating net loss of ₹2.89 crore between January 2021 and July 2023. This directly contradicted his public claims of consistent 20%-30% profits and high-accuracy calls.

SEBI concluded the activities were not educational but constituted unregistered investment advice. This involved personalised guidance for live market transactions. The Sprouts News Special Investigation Team notes this pattern is a hallmark of such illicit finfluencer operations.

A Regulatory Onslaught Against Digital Financial Fraud

The crackdown on ‘Baap of Charts’ is not an isolated event but part of a sweeping regulatory campaign. SEBI is systematically targeting unauthorised financial advice online, a space crowded with influencers following the surge in retail investing. The number of retail investors in India soared from 4.9 crore in 2019 to 13.2 crore by 2024.

Recent Major SEBI Actions Against Unregistered Advisors:

• Avadhut Sathe: Enforcement action for allegedly duping investors of ₹546 crore under the guise of educational courses.

• Asmita Patel and Associates: SEBI banned the finfluencer and seized over ₹53 crore in illicit profits.

• ‘Baap of Charts’ (Mohammad Ansari): Current recovery proceedings for ₹18.14 crore in dues and investor refunds.

Concurrently, SEBI’s powers have been significantly bolstered. In early December 2025, the government authorised SEBI to directly order social media platforms to remove unlawful stock-related content. Platforms like YouTube, X, and Instagram must comply with takedown orders within 36 hours. This move aims to curb market manipulation and misleading promotions at their source.

Also Read: Maharashtra Sports Minister Manikrao Kokate Gets 2-Year Jail.

The New Rules: Registration, Deposits, and AI Disclosure

For legitimate advisors, the regulatory landscape has been modernised. SEBI has introduced a structured framework to bring clarity and protect investors. Key changes effective in 2025 include the introduction of part-time investment adviser (PTIA) registrations and reduced qualification barriers. A major shift replaces net-worth requirements with a client-based deposit system.

SEBI’s 2025 Compliance Framework for Advisors:

• Financial Buffer: Mandatory deposits ranging from ₹1 lakh to ₹10 lakh based on client count, held in lien.

• Fee Transparency: Clear caps on advisory fees, either a fixed ₹1.51 lakh/year or 2.5% of assets under advice.

• AI Accountability: Mandatory disclosure of Artificial Intelligence tool usage in generating advice.

• Client Agreement: Use of standardised ‘Most Important Terms & Conditions’ (MITC).

These rules demand greater transparency, especially concerning AI-driven advice. Advisers remain fully accountable for all recommendations, regardless of the tools used. The reforms aim to create a more trustworthy environment for India’s growing investor base.

Outlook

SEBI’s aggressive recovery of ₹18.14 crore from ‘Baap of Charts’ signals zero tolerance for regulatory evasion. The multi-stage action—from attachment of bank accounts to seizure of properties—demonstrates a resolved enforcement machinery. This case, alongside actions against other major finfluencers, serves as a stark warning.

The parallel development of new registration frameworks and takedown authorities creates a dual strategy. It aims to legitimise ethical advisory practices while dismantling fraudulent networks. For millions of new Indian investors, understanding this distinction is crucial. The era of unchecked financial influence on social media is facing a formidable regulatory reckoning.