SEBI is working on guidelines for financial influencers advising on stocks on YouTube and other social media platforms
Market regulator Securities and Exchange Board of India (SEBI) said it was working on guidelines for financial influencers, reports Living mint.
A financial influencer, or ‘finfluencer’, is someone who provides information and advice to an ordinary investor on a range of financial topics such as stock trading, personal finance and mutual funds on various social media platforms. , including Telegram, Facebook, YouTube, WhatsApp. and Instagram.
These finfluencers post videos on YouTube and other social media platforms, mostly in Hindi or a regional language, or even “Hinglish”, a mixture of Hindi and English, to to attract new non-English-speaking investors from small towns.
Everyday people, who want to invest in the market, have started following them en masse on their social media pages or channels, with the most popular “influencers” numbering in the millions.
“We’re working on the guidelines for financial influencers,” said full-time SEBI member SK Mohanty. cited by Living mint as said on the sidelines of a conference in Mumbai.
The development reportedly comes after the market regulator witnessed an exponential rise in the number of various ‘unregistered’ investment advisers giving unsolicited advice on social media ‘stocks’ on various social media platforms. .