Giving Investment Tips on Social Media? Beware! SEBI Turns Up Heat on Finfluencers Days After Imposing Rs 17 Crore Penalty on ‘Baap of Chart’
Photo : Shutterstock.com
Financial influencers providing investment advice on social media have come under the scrutiny of the Securities and Exchange Board of India (SEBI). The market regulator has intensified its efforts to clamp down on unregistered advisors offering investment tips through social media platforms.
In a recent development, SEBI barred Mohammad Nasiruddin Ansari and two affiliated entities from the market and ordered them to reimburse over Rs 17 crore to their followers, TOI reported from Bloomberg report.
Notably, Ansari boasts a YouTube channel with nearly half a million subscribers, and his web portal, designed for educational purposes, was actually providing investment guidance. This marks at least the third prominent crackdown on a financial influencer by SEBI this year.
While the retail trading frenzy that characterized the COVID-19 era has waned in many parts of the world, the ongoing surge in Indian equities since the pandemic’s onset has lured a significant number of young investors to seek stock tips on social media. This trend has given rise to a proliferation of influencers like Ansari, offering investment lessons.
SEBI has consistently cautioned investors about the perils of heeding dubious advice from social media sources and has taken action against at least 29 unregistered entities that offered investment recommendations. This includes actions taken against a popular influencer and options trader, P R Sundar, as well as restrictions imposed on Profit Guru and its founder, Satish Shukla.
In an effort to regulate financial influencers, SEBI sought public input in August on proposed regulations aimed at curbing the activities of advisers and analysts who lack the necessary registration with the regulatory body.
As promised by Elon Musk, X has now released two new tiers for its X Premium subscription offering, as it works to get more people paying to use the app. The new tiers will supplement the current X Premium package, with “Premium+”, priced at $US16 per month, offering an ad-free X experience, and “Premium Basic”,...
In this new information age, data is king — but with this value attached to data by individuals, corporations, and governments comes unique challenges. Normalyze CEO and Founder Amer Deeba is well aware of the complexities now faced in protecting privacy and managing massive amounts of information. Normalyze is a cybersecurity company that helps its...