Mumbai: The capital markets watchdog Securities Exchange Board of Indian (SEBI) has amended norms in a bid to regulate unregistered financial influencers amid growing concerns about potential risk associated with such persons.
SEBI has amended norms governing depository participants, intermediaries and Securities Contracts to curb the menace of fininfluencers.
The notification explicitly bars person regulated by SEBI or the agent of such a person having direct or indirect association with another person who provides advice or any recommendation, directly or indirectly related to securities market unless the person is registered and is permitted by the Board to provide such advice, recommendation or makes any claim of returns and on performances of the trading stocks.
“The market regulator SEBI is setting standard for accountability and expertise in the sector for financial influencers to register and adhere to specific guidelines the regulator is setting,” explained a senior board exchange official.
Echoing the SEBI sentiments, Dalal street expresses happiness at reigning the unregulated financial influencers playing with the sentiments of investors and credibility loss in the stock markets. “The move would ensure that mutual fund houses, research analysts, registered investment advisors and stock brokers do not partner with finfluencers,” said a stock broker.
The veteran Dalal street player felt the Finfluencers significantly impacted their followers' financial decisions in the last few years and SEBI regulatory framework can make them accountable and responsible for the financial advice provided to investors.
