Financial Influencers under the radar of SEBI | Business News

29 Aug, 2023 Author: Ayushee Joshi

Market regulator SEBI (Securities Exchange Board of India) is planning a crackdown on Financial Influencers, who provide financial advice on social media, as well as finance influencers who work with stock brokers. SEBI published a consultation paper on the relationship between registered intermediaries and “finfluencers,” or digital and social media influencers.

SEBI to take action on Fin Influencers

The report mentions unregistered businesses or finfluencers are urging their followers to acquire products, services, or stocks in exchange for undisclosed payments from platforms, manufacturers, or products. According to SEBI, while these finfluencers are not regulated by the market regulator’s code of conduct, they may be required to disclose any possible conflict of interest, such as their relationship with or significant interest in the items, services, or securities that they promote.