Financial Influencers

Regulating Unregistered Financial Influencers: In recent times, there is a concern about people on social media who give financial advice without proper registration. They are called “finfluencers.” These individuals have gained a lot of influence and often give advices, which can be misleading. To address this issue, the market regulator in India, called SEBI, is taking action to create rules and guidelines to regulate these finfluencers.

SEBI, under the leadership of Madhabi Puri Buch, is developing a document to discuss and formulate effective regulations. This document will be open for public comments soon, allowing people to share their thoughts and opinions.

SEBI has already approved some measures to protect investors and maintain a fair market. One of these measures is reducing the time it takes to list shares after a company goes public. This will make the listing process faster and more efficient for companies and investors.

SEBI is also making disclosure norms stricter for large foreign investors. This will bring more transparency and accountability, helping investors make better decisions based on accurate information.

SEBI understands the importance of educating investors about the market and investments. However, there is a problem when unregistered finfluencers give unsolicited advice. Many of them manipulate the market, give misleading guidance, and even get paid commissions without disclosing it.

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To protect the public from these manipulative practices, SEBI is planning to introduce comprehensive guidelines. These guidelines will not only control the activities of unregistered finfluencers but also raise awareness among investors about the risks of relying on their advice.

SEBI has been proactive in warning the public about the risks associated with unregistered financial influencers. They have taken action against those who engage in market abuse and manipulation, such as leaking sensitive information. This has led to changes in how companies communicate their earnings and interact with the media.

Sebi wants to give brokers and mutual funds more control over the involvement of financial influencers in their social media advertising. By limiting their influence, SEBI aims to prevent the spread of potentially misleading financial advice and protect investors’ interests.

SEBI has been working on formulating regulations since January 2022, but official guidelines have not been issued yet. However, they have taken action against manipulators to show their commitment to maintaining a fair market and protecting investors. For example, they discovered instances of market abuse through Telegram and took action against YouTubers involved in price manipulation and illicit gains.

SEBI’s actions demonstrate their dedication to ensuring integrity in the market and safeguarding the interests of investors.
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