‘Finfluencers’ to come under regulatory purview soon

NEW DELHI: The rise of financial influencers – who charge as high as Rs 7.5 lakh for a post on social media – introduced a new way for people to access and interpret financial information, and these ‘finfluencers’ will soon come under the regulatory purview as Sebi proposed measures to curb their mushrooming numbers.
The proposed move by Sebi not only ensures that investors receive accurate and unbiased information but also helps in preserving authenticity and reducing fraud, Feroz Azeez, deputy CEO, Anand Rathi Wealth, said.
Under the proposal, finfluencers need to be registered with Sebi and adhere to specific guidelines. Further, it has been proposed to ban unregistered finfluencers from partnering with mutual funds and stockbrokers for promotional activities.
While many finfluencers provide valuable insights, there has been a growing concern over the potential risks associated with unregulated finfluencers who might offer biased or misleading advice.
“The regulatory move to address the role of finfluencers in the financial sector is undoubtedly significant in enhancing investor protection and promoting transparency,” Azeez added. Further, registered finfluencers are expected to display their contact details and make appropriate disclosure and disclaimer on any posts. agencies