Reports say that the draft will be out in the next couple of months
The Securities and Exchange Board of India (Sebi) will be finalising a draft discussion paper on guidelines to regulate financial influencers or finfluencers who give out investment advice. Reports say that the draft will be out in the next couple of months.
Sebi chairperson Madhabi Puri Buch released a statement in the wake of the income tax department sending out notices to 35 social media influencers who were allegedly evading taxes worth crores.
Buch reportedly told the media that the discussion paper will be centred on regulating financial influencers. The chairperson said that the guidelines will be formulated to rein in finfluencers offering unsolicited investment advice and are not registered with Sebi.
There has been a surge of finfluencers manipulating the market and doling out unqualified advice, earning huge commissions from these platforms and from the market by transacting on the stocks they spoke about.
With social media users going up on platforms like YouTube, Instagram and Twitter, Sebi has sounded the alarm bells to the public to steer clear of such unqualified finfluencers.
