Mumbai: The Securities and Exchange Board of India (SEBI) on Wednesday prohibited a well-known social media influencer from engaging in securities trading and ordered him to reimburse Rs 17.2 crore collected from his followers, Bloomberg reported.

In an interim order on Wednesday, SEBI prohibited Mohammad Nasiruddin Ansari, known as "Baap of Chart" on social media, from participating in the buying, selling, or handling of securities. It also barred another person and a company associated with Ansari.

SEBI's inquiry revealed that he was presenting stock suggestions under the guise of offering educational guidance.

This move by the market regulator comes in response to escalating demands on platforms like X (previously known as Twitter) for stricter measures against persons known as "finfluencers."

There are huge concerns about the legitimacy of their suggestions regarding profitable trading strategies shared with their audience.

"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 report said.

SEBI's probe revealed that Nasir would provide assistance and advice to individuals who paid him for 'live market' dealings.

Earlier in August, the market regulator had called for public opinions on a regulation aimed at curbing the activities of investment advisors and market analysts not registered with SEBI.

This action from SEBI comes at a time when stocks are gaining popularity among retail investors in India.