TaxTMI 
TaxTMI 
2023 (10) TMI 1557
X X X X Extracts X X X X
X X X X Extracts X X X X
....s, 2013 ("IA Regulations") and Securities and Exchange Board of India Act, 1992 ("SEBI Act, 1992"). The examination period in the instant matter is from January 01, 2021 - July 07, 2023. However, reference outside this period has been made wherever required. 2. During the course of examination, it was observed that Nasir is promoting himself as a stock market expert on various social media platforms and luring investors/ clients to enrol for various 'educational courses' offered by him and inducing them to invest in securities market by promising them the prospect of making profits with near certainty if the recommendation/ advice is followed. As per the material available on record, BoC is a proprietorship firm with Nasir being the sole proprietor. Further, it was observed that Nasir has uploaded his 'educational courses' on website/ apps through the application services provided by Bunch Microtechnologies Private Limited ("Bunch") wherein he is collecting money for enrolment in the said courses and providing access to his 'classes' to investors/ clients. Also, Nasir is found to be providing buy/ sell recommendations in private groups of his investors/ clients. It was observed ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ia provided the following information vide e-mail dated January 21, 2023 (through [email protected]): Table - 1 S. No. Details sought Details provided (i) Business Activities Coaching and workshop (ii) Demat / trading accounts Zerodha : XA1383 Angel Broking: M290475 Upstox: 151018 Alice blue: PAT279 Choice Broking: KJM006 (iii) Phone Numbers 90******07 and 63******36 (iv) Social Media Accounts Twitter: @Baapofchart Instagram: @Baapofchart Facebook: @Baapofchart Telegram: @Baapofchart & @XROKCERS5 Youtube: @Baapofchart Personal social media: Instagram: Mdnasirboc Facebook: Mdnasirboc Youtube: NasirTalks (v) Link of the Website being operated www.baapofchart.com (vi) Details of directorships/partnerships Golden Syndicate Ventures Pvt. Ltd. (PAN: AAJCG9452E) Date of Appointment: 27/07/2022 (v) Details of Shareholding Golden Syndicate Ventures Pvt. Ltd. 25% Share holding 6. Further, in the aforesaid e-mail, Nasir denied providing any advice relating to investment in securities markets and providing any buy / sell / hold recommendation in respect of securities. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uch 'educational courses'/ 'workshops'. The details of amount collected and the beneficiary bank accounts are discussed later in this Order. I note that apart from 'educational courses' provided online by Nasir through Bunch platform, Nasir also organizes physical workshops in various cities for 'educating' his clients/ investors about securities markets. 9. Therefore, to assess BoC/ Nasir's conduct, I must evaluate if his activity was in fact one of rendering advice and inducing to trade couched as offline and online education, as well as his method of receiving consideration for the same and the terms thereof. OFFLINE ACTIVITIES 10. As per the examination, Nasir conducts offline workshops pertaining to securities market. In a video posted on September 13, 2022 on the YouTube channel of Nasir (@Baapofchart) for one such offline workshop, it was mentioned on screen "Rs. 80,000/- Profit in live trading with 500+ students". A snapshot of the same is provided below: ONLINE ACTIVITIES WEBSITES AND MOBILE APPS 11. During the course of examination, it was observed that following websites/ apps were being promoted by Nasir/ BoC on their aforesaid social media: 1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....- 4 S. No. Name of the course/workshop Actual Price (INR) Offer Price (INR) 1 The secrets of data reading 51,000 6,000 2 D 30 strategy 10,000 5,001 3 MSP-(Make Sureshot Profit) 33,000 6,000 4 360 Degree Expiry Strategy 15,000 5,100 5 Advance Hedging Course 9,000 2,400 6 Bengluru Workshop (1 ** instalment) 9,000 6,000 7 200X Option Buying Strategy 6,000 1,500 8 Banknifty 325 Premium Strategy (3months) 18,000 12,000 9 Banknifty 325 Premium Strategy 9,000 6,000 10 Banknifty Shaktiman Strategy 6,000 3,300 11 Scalping Trading full 4 days Course 9,999 6,600 12 Scalping Trading Course (Day 05) 5,001 2,400 13 Scalping Trading full 5 days Course 18,000 9,000 14 Scalping Trading Course (Day 04) 5,001 2,400 15 Scalping Trading Course (Day 03) 5,001 2,100 16 Scalping Trading Course (Day 02) 5,001 2,400 17 325 Premium Strategy 3 to 4 strategies in one video 2,400 - 18 325 Option Buying Strategy 1,100 - 19 BOC 145 Premium Strategies with Trading Psychology 5,000 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e website of BoC (https://baapofchart.com/), Nasir is offering courses mentioned at S. Nos. 2-4 at Table - 4 above and seeking fees for such courses as mentioned in the said Table - 4 above. From the description of courses provided on the said website, it is observed that Nasir claims that the strategies taught in his courses would result in assured profits. For instance, in the course D 30 Strategy Option Buying, it is stated that D 30 means daily 30-point sure shot profit. Similarly, for the course 360-Degree Expiry Strategy, it is mentioned that Minimum Capital should be 30k to make 1 L Every Expiry. It is observed that payment is sought for such courses through UPI IDs (nasirboc@kotak or bocalgo@Kotak) and as per the website, upon sending screenshot of payment to their email ID ([email protected]), the clients will be added to groups for respective courses. 13.2 Similarly, on the website https://bocalgo.com/, Nasir is seeking payment for the strategies through UPI ID- bocalgo@kotak and it is stated on the website that upon receipt of payment, strategy link will be provided to clients. As per the website, the following are the charges for the strategies sold by Nasi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... will refund 3 times the amount paid. 14.3 Sure shot 30000 returns with 100000 capital in options with minimum 50k returns on the expiry day. 15. The complainant alleged that he paid INR 6000 for strategy. In pursuance of the same, he provided the following screenshots of private/ whatsapp groups operated by Nasir/ BoC: 16. From the aforesaid screenshots, it is observed that Nasir is inducing clients/ investors by assuring profits/ returns of a minimum INR 3,00,000 and extending to 6,00,000 per month and also giving recommendation to buy. Further, it is also stated that upon payment for courses, Nasir will give dedicated support and guide everyone personally for live market transactions. In view of the above, I note that under the garb of providing courses related to securities market, Nasir is giving recommendations to the clients in private groups and luring investors/ clients to invest in securities market by assuring returns. ACTIVITIES ON SOCIAL MEDIA 17. The YouTube channel of Nasir (@Baapofchart) has more than 4.43 lakh subscribers and more than 7 crore views. As per the examination report, upon analysis of certain videos posted on the said YouTube chann....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the trading losses with a proper trading mindset and simple tricks and the screenshot of the same is provided below 18.3 In a message posted on the said Telegram Channel, a 3 month Telegram subscription at INR 12,000 was offered which included learning in live market and a link to the website (https://rjdif.courses.store/280948) was also provided. A screenshot of the said message is provided below 19. On the Instagram account "baapofchart", there are around 59,000 followers. During the course of examination, it was inter alia observed from the photos posted on the said account that BoC provided "Super 30 Strategy for per week sucure 4% Profit". Further, for a 2 day online session, BoC stated that "On only 2 setup anyone can make consistent profit with confidence". Screenshots of the said messages are provided below 20. On the twitter profile of Nasir (https://twitter.com/baapofchart), there are around 78,000 followers. Upon perusal of the tweets of the said profile during the course of examination, the following was observed (screenshots provided): 20.1 Nasir posted a screenshot from a private group wherein he recommended "Add quantities, use maximum 40% cap....
X X X X Extracts X X X X
X X X X Extracts X X X X
....erein 2-3 set ups will be given to investors and anyhow investors will get 30 points in Nifty and 90 points in Bank Nifty. He further declares a course condition that if investors suffer loss after completing the course, fees will be refunded to 'investors'/ 'students'. 23.4 In 'Shaktiman Strategy', Nasir states that this strategy is an option buying strategy for Nifty and declares that this strategy will provide profit no matter how market performs. He further gives a challenge that if investors follow the strategy for 3 months, there will be no loss and if there is loss, the fees will be refunded. 23.5 From the aforesaid videos/ course content, I note that Nasir was luring persons with such 'open challenges'/ 'agreements' of sureshot profit from his 'strategies'/ 'courses' and refund of fees in cases of loss. GOLDEN SYNDICATE VENTURES PVT. LTD. 24. As discussed in para 12.2 above, apart from bank account of BoC/ Nasir, amount collected from the courses listed on Bunch platform was also deposited in the bank accounts of GSVPL (HDFC Bank A/c No. 59231100000012) and Padamati Rahul Rao (Kotak Mahindra Bank A/c Nos. 7512208658 and 8125749008). 25. A search w....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the courses/ workshops sold by Nasir/ BoC through Bunch platform. Further, it is observed that monies have been transferred from the account of GSVPL to Tabraiz. 27.2.2. During the course of examination, the twitter profile of Tabraiz (https://twitter.com/CAtabraiz) was examined and it was observed that Tabraiz is actively involved in promoting BoC through retweeting the tweets of Nasir relating to BoC and answering the queries of clients of BoC. Some of the screenshots are provided below: 27.3 Asif Iqbal Wani ("Asif") 27.3.1. As stated above, Asif is a director of GSVPL and holds 24% shares of GSVPL. Upon perusal of the documents provided by HDFC Bank for the bank account of GSVPL, it is observed that Asif is one of the authorized signatories for the said bank account wherein an amount of approx. INR 9 Crore is credited for the courses/ workshops sold by Nasir/ BoC through Bunch platform. Further, it is observed that monies have been transferred from the account of GSVPL to Asif. 27.3.2. During the course of examination, the twitter profile of Asif (https://twitter.com/ASIFIQBAL_WANI) was examined and it was observed that Asif has inter alia me....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fline mode(*) 1,35,74,872 Total 13,78,61,576.35 * Nasir Directly collected the total course price from clients/ investors as informed by Bunch 29. As the aforesaid amount was collected through the payment gateway provided by Bunch for 'educational courses', collated by Bunch for all the courses availed by 'students' and identifiable directly with such courses, the complete amount is considered as fees received from fraudulent and unregistered investment advisory activities. 30. In addition to the above, as discussed in para 13 above, the two UPI IDs relating to Kotak Mahindra Bank were publicized on the website/ social media for collecting fees from clients/ investors and amounts were collected in the said bank accounts (2714680394 and 7946143525) belonging to Nasir/ BoC. In view of the above, account statements for the said accounts were sought from Kotak Mahindra Bank for the period January 2021 to June 2023. Upon examination of the said account statements, following is observed: Table - 12 S. No. Account Number Date of Account Opening No. of UPI/ IMPS Transactions (excluding own transfers/ reversal of charges, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the conditions of a certificate of registration obtained from the Board in accordance with the regulations made under this Act: IA Regulations Application for grant of certificate. 3. (1) On and from the commencement of these regulations, no person shall act as an investment adviser or hold itself out as an investment adviser unless he has obtained a certificate of registration from the Board under these regulations:" 34. It is prima facie observed, based on the facts and circumstances already discussed in previous paragraphs, that Noticees are engaged in business of providing investment advice to their clients/ investors for consideration by inducing them to subscribe to their courses/ workshops and adding them to closed groups wherein recommendations are given to the investors/ clients. Further, investors/ clients were assured that upon payment of consideration/ subscription amount, Nasir will give them dedicated support/ personal guidance one by one and will call them for such guidance. Such activities of the Noticees are covered under the definitions of 'investment advice' and 'investment adviser' as defined under regulation 2(1)(l) and 2(1)(m) of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... can be observed, contrary to Nasir's claims that he had been making profits of 20-30%, he infact incurred a net trading loss amounting to INR 2,89,60,828.02 (Rupees Two Crore Eighty Nine Lakh Sixty Thousand Eight Hundred Twenty Eight and Two Paisa) for the period January 01, 2021 - July 07, 2023. Through his offline/ online "classes" as well as his videos and messages on social media, Nasir presents himself as a stock market expert and claims BoC recommendations has 95% accuracy whereas Nasir could not make any overall profit in his personal capacity through trading in securities over a period of 2.5 years. Nasir, who claims to provide strategies for trading that would lead to 200-300% profit/ assured or near-assured returns, has actually incurred a net loss of INR 2,89,60,828.02 through trading in securities and has concealed such facts from the investors in his videos/ workshops/ groups. Therefore, the claim of certainty or near-certainty on returns on his trading calls/ 'educational videos' is not supported by his individual record of trading in the securities market. Such mis-selling/misleading/ false statements have the effect of inducing investors to invest in the securities....
X X X X Extracts X X X X
X X X X Extracts X X X X
....scheme or artifice to defraud in connection with issue or dealing in securities which are listed or proposed to be listed on a recognised stock exchange; (c) engage in any act, practice, course of business which operates or would operate as fraud or deceit upon any person, in connection with the issue, dealing in securities which are listed or proposed to be listed on a recognised stock exchange, in contravention of the provisions of this Act or the rules or the regulations made thereunder; "PFUTP Regulations Definitions 2. (1) In these regulations, unless the context otherwise requires,- (c) "fraud" includes any act, expression, omission or concealment committed whether in a deceitful manner or not by a person or by any other person with his connivance or by his agent while dealing in securities in order to induce another person or his agent to deal in securities, whether or not there is any wrongful gain or avoidance of any loss, and shall also include- (1) a knowing misrepresentation of the truth or concealment of material fact in order that another person may act to his detriment; (2) a suggestion as to a fact which....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (k) disseminating information or advice through any media, whether physical or digital, which the disseminator knows to be false or misleading in a reckless or careless manner and which is designed to, or likely to influence the decision of investors dealing in securities; (s) mis-selling of securities or services related to securities market; Explanation- For the purpose of this clause, "mis-selling" means sale of securities or services relating to securities market by any person, directly or indirectly, by- (i) knowingly making a false or misleading statement, or (ii) knowingly concealing or omitting material facts, or (iii) knowingly concealing the associated risk, or (iv) not taking reasonable care to ensure suitability of the securities or service to the buyer;" E. CONCLUSION 39. Regulation 3 of the IA Regulations, inter alia, provides that, no person shall act as an investment adviser or hold itself out as an investment adviser, unless he has obtained a certificate of registration from SEBI. The activities of Noticees as brought out from the various materials described above including their websites, apps, bank....
X X X X Extracts X X X X
X X X X Extracts X X X X
....a profit sharing percentage (refer para 13.2 above). The theatrics and showmanship in the trailer videos on YouTube issued by Md. Nasir/ BoC appear to be aimed at creating illusion of unnatural returns by drawing in gullible and uninformed viewers to join his 'classes' thereby inducing them to trade in the securities market. 42. I note from the website (https://bocalgo.com/disclaimer/) of Noticees that they have provided a disclaimer on their websites that they are not registered with SEBI as investment adviser and that the information provided by the Noticees are for educational purposes only. In addition to the above, Noticees have provided the following disclaimer on BoC website (https://baapofchart.com/privacy-policy-2/#): 43. As can be seen from the screenshot recorded above, the assertions made in the 'disclaimer' are, at the very least, ambiguous. Even while claiming that the information provided is for educational purpose only, the webpage markets the product as being focused towards individuals who like to generate "consistent profit". It appears, prima facie, that such disclaimers are an attempt by the Noticees to absolve themselves of any liability by seemingly war....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on 12(1) of the SEBI Act read with regulation 3(1) of IA Regulations. Considering the facts and circumstances narrated above, I also prima facie conclude that the Noticees have violated regulations 3 (a)-(d), 4(1), 4(2)(k) & (s) of PFUTP Regulations read with section 12A of the SEBI Act. 45. Based on the examination carried out of the statements of bank accounts linked with courses offered on Bunch platform as well the UPI IDs advertised on social media platforms/ websites that prima facie at least INR 17,20,76,616.09 (Rupees Seventeen Crore Twenty Lakh Seventy Six Thousand Six Hundred Sixteen and Nine Paisa) have been collected through such fraudulent and unregistered investment advisory activities. F. NEED FOR INTERIM DIRECTIONS 46. SEBI has a statutory duty to protect the interest of investors in securities market and to promote the development of, and to regulate, the securities market. Section 11 of the SEBI Act empowers SEBI to take such measures as it thinks fit for fulfilling its legislative mandate. The IA Regulations have been formulated with the main objective of regulating investment advisory activities to safeguard the interests of investors. Registration of s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....erein he is declaring Now Make Daily Sureshot Profit with BOC AI. The screenshots from YouTube and WhatsApp channels are provided below. Therefore, the Noticees continue to lure and induce investors to invest in securities market and collect money from them through 'educational courses'. 48. It is noted that registration and regulation of intermediaries provides assurance of quality and standards to their clients / investors. They are subject to regulatory purview of SEBI which inter alia monitors their compliance with the law. Registration of such investment advisers is also subject to satisfaction of 'fit and proper' norms. The requirements under IA Regulations are aimed at the protection of the investors in the securities market. Therefore, turning a blind eye to unqualified and unregulated investment advisory services can cause irreparable damage to the integrity of securities market. Such services may adversely impact the orderly development of securities market apart from hurting the interests of the investors in the market. 49. Considering the facts and circumstances of the present matter and on the basis of the prima facie findings, it is necessary to take urgent prev....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... above that prima facie, an amount of INR 17,20,76,616.09 (Rupees Seventeen Crore Twenty Lakh Seventy Six Thousand Six Hundred Sixteen and Nine Paisa) has been accumulated during a period of just over 2 years from carrying out investment advisory activities which are both unregistered and fraudulent. In view of receipt of fees for 'educational courses' directly in their bank accounts, prima facie it is concluded that the aforesaid Noticee Nos. 1, 2 and 5 are jointly and severally liable for alleged unlawful gains as mentioned in para 32 above as an interim measure. Considering that the Noticee Nos. 1, 2 and 5 have wantonly engaged in perpetrating fraudulent activity, I cannot ignore the risk that the said Noticees may divert the alleged unlawful gains before directions for disgorgement / refund, etc., if any, are passed. Further, I note that in his videos/ social media posts on 'courses' of BoC, Nasir repeatedly emphasizes on providing access to live trading during his courses. Therefore, non-interference at this stage would result in irreparable injury to interests of the securities market and the investors. Considering the factual matrix of the case and the prima facie conclusion....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or in their custody, until further orders. 52.5 Noticee Nos. 1, 2 and 5 are directed not to dispose of or alienate any assets, whether movable or immovable, or any interest or investment or charge on any of such assets held in their name, jointly or severally, including money lying in bank accounts except with the prior permission of SEBI until the impounded amount is deposited in the escrow account; 52.6 Noticee Nos. 1, 2 and 5 are directed to provide a full inventory of all assets held in their names, jointly or severally, whether movable or immovable, or any interest or investment or charge on any of such assets, including details of all bank accounts, demat accounts and mutual fund investments, immediately but not later than 15 days from the date of receipt of this Order; 52.7 The banks where Noticee Nos. 1, 2 and 5 are holding bank accounts, individually or jointly, are directed to ensure that till further directions, except for compliance of direction at para 52.3 above, no debits are made in the said bank accounts without the permission of SEBI. The banks are directed to ensure that all the above directions are strictly enforced. On production of p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in any manner for an appropriate period. 55. The Noticees may, within a period of 21 days from the date of receipt of this Order, file their reply / objections, if any, to this Order and may also indicate whether they desire to avail an opportunity of personal hearing on a date and time to be fixed in that regard. 56. This order is without prejudice to the right of SEBI to take any other action that may initiated against the aforementioned entity in accordance with law. 57. A copy of this Order shall be served upon Noticees, Stock Exchanges, Banks, Registrar and Transfer Agents and Depositories for necessary action and compliance with the above directions. Further, a copy of this Order shall be sent to Bunch Microtechnologies Private Limited to ensure compliance with paras 52.1 and 52.9 of this Order. ============= Document 1 @ youtube.com/watch?v=jpWIHRF6FaQ E YouTube Search 237.00 NRML OCT 17550 PE NR 414.30 OCT 18050 PE NIFTY 15h - SEP 40200 PE 15th . SEP 17800 PE 150 . SEP 17700 CE Rs 80 000/- Profit in live trading with 500+ students 0:34/ 0:45 Mumbai Physical Workshop Day 1 Trailer Baap of Chart 407K subscribers 1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ouTube Friday Sureshot Option Buying Strategy | Best Risk Free Strategy In this video, I have explained to you how you can recover all your trading losses with a proper trading mindset and simple tricks. Today we will learn about Friday's Option buying Sureshot Strategy which is one of the best option buying strategies for Intraday. it's based on my last 5 Years o .. Document 9 Baap Of Chart Option Hedging 53,802 subscribers Back Pinned Message Who wants to join 4 days remaining Scalping .. 62 26 December 3, 2022 t Hello Everyone We have launched 3 Month Telegram Subscription at Just 12000. You will get learning in live market and u can see my live positions in zoom . Link- https:/rjdif.courses.store/ 280948 Document 10 baapofchart . Mumba Dream City baspofchart . BONUS: ONE JACKPOT TRADE FREE SUPER 30 STRATEGY FOR PER WEEK SUCURE 4% PROFIT ! LEARN DATA READING & DOT TO DOT LEVELS 2 DAYS ONLINE SESSION BAAP A 299 los baspofchart Learn how I calculate dot to dot levels and how to read Fil Dit Option Data , On only 2 setup anyone can make consistent profit with confidence Document 11 Screenshot 1 Screenshot 2 Md Nasir....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g Tools Contact Sign in Privacy Policy & Disclaimer Welcome to Baapofchart.com ! Risk Disclosure The information provided is for educational purposes only. Our intention is not to provide any financial advice, investment advice, trading advice, or any other advice. This is general information & is not explicit to you or anyone else do not take any action unless you are set up to continue an "ALL OUT MISFORTUNE" or "TOTAL LOSS". Your misfortune could incorporate cash you contributed just as commissions & exchange charges. Without the consultation of any professional. We strictly recommend you, not make any decisions, finances, investments, trading, or otherwise. Please understand that using this information would be totally at your own risk Baapofchart is a product developed focusing individuals, who would like to generate consistent profit without spending their time on trading. Document 17 € Baap of Chart Baap of Chart 13:3K Followers Q € Follow Baap of Chart . 10:27 AM @POaspolChart 429K subscribers 1.1K videos Making trading Simple without any Chart and Blakwas. This channel is based on various strategies rela....