Online platforms have removed the requirement for young investors to rely on stock brokers, as AI has also entered the space to deliver insights and manage portfolios. But it has also opened doors for social media influencers who have been doling out investment advise without qualifications or considerable experience.
Although the Securities and Exchange Board of India (SEBI) has banned financial influencers and plans to tighten norms, the Reserve Bank of India has no such plans.
SEBI doing enough?
RBI Governor Shaktikanta Das, who was recently named Governor of the Year at Central Banking Awards, said that RBI doesn't need separate guidelines to regulate finfluencers, since SEBI's rules will be enough.
The assertion comes at a time when celebrities such as Arshad Warsi have also faced action for sharing videos that gave dubious investment advise.
Influencers have also been caught trying to manipulate investors into buying specific stocks or crypto assets, after being paid to promote them.
Finfluencers already finding new ways
SEBI has been considering restrictions on such practices for more than a year, and recently finfluencers have also been facing difficulties in getting registered as advisors.
To get around rules, financial influencers are also renting licenses from those who are qualified, and are also using code language in videos to escape scrutiny.
