FINFLUENCERS
From finfluencer crackdown to F&O stock entry, exit tweaks, top 10 decisions from Sebi board meeting
The Securities and Exchange Board of India (Sebi) has approved finfluencer norms, prohibiting regulated entities like brokers from dealing with them. Under the norms, the Sebi regulated entities and their agents are barred from having any association directly or indirectly with any other person who provides advice or recommendation in respect to securities
Sebi framework for finfluencers; Nazara's Freaks4U deal
The Security and Exchange Board of India (Sebi) has approved a regulatory framework for financial influencers. This and more today’s ETtech Top 5.
SEBI cracks down on finfluencers, streamlines voluntary delisting process
In a significant move, the regulator approved a fixed price process for voluntary delisting, offering companies an alternative to the existing reverse book-building mechanism. Sebi chief Madhabi Puri Buch emphasised that unregulated entities providing market-related advice are acting unlawfully. The regulator also introduced a new delisting framework for investment holding companies, with the fixed price set at a 15% premium over the floor price. Additionally, SEBI granted exemptions to certain UNI funds from the beneficial ownership rule.
Threat of bad advice: A more crucial aspect of financial literacy is not just what to do with money, but also what not to do with it
The real pitfalls arise when bad financial products are marketed as good ones, and investors fail to recognise the deceit. If you are saving and investing, encountering such schemes is inevitable; it’s not an exception, but certainty. Thus, a more crucial aspect of financial literacy is not just what to do with money, but also what not to do with it.
Sebi cracks the whip on finfluencers trying to manipulate IPOs
The move is meant to restrict the impact of finfluencers in the IPO market and help investors have an easier understanding of key features of an offer. All IPO-bound companies are mandated to make videos informing investors not to rely on finfluencers or financial influencers circulating misinformation on social media platforms.
Whatsapp investing scams: Red flags to watch out for
Fraudsters are using identities of established brands and reputed professionals to offer investors bogus stock tips and trading courses.
SEBI directs finfluencer to deposit Rs 12 crore 'unlawful gains'
Ravindra Balu Bharti, a YouTuber and financial influencer, was running a firm called Ravindra Bharti Education Institute Pvt. Ltd. (RBEIPL), founded in 2016 by him and his wife. The company was primarily involved in imparting training related to stock market trading activities. He runs two YouTube channels — Bharti Share Market -Marathi, which has around 10.8 lakh subscribers and Bharti Share Market - Hindi, with 8.33 lakh subscribers.
Finfluencer mess: Assessing the need for SEBI intervention
The advent of finfluencers, gaining momentum in the wake of the 2020 global pandemic, has reshaped how individuals engage with financial markets.
How to decide which financial advice to take and which one to ignore
Should you go by your parents’ age-old advice on buying a house, or the earnest tips from a friend who made a killing through cryptocurrencies, or perhaps try out the finfluencer who has 4.5 million followers? How do you decide whom to trust? Check here
What Sebi's crackdown on Baap of Chart reveals about stock market, investors
The interesting thing is the air of hyperbolic stardom and celebrityhood that has been created around the perpetrator. It tells us about the type of investors who were being targeted. Someone who has chosen and promoted a personal brand ‘Baap of Chart’ is not looking for an informed or evolved investor.
Explained: Who is Baap of Chart and why is Sebi cracking down against finfluencers
Sebi received a complaint against Ansari claiming that he has been looting retail traders by showing assured returns. Although he himself has been making losses, Nasir has assured his students returns with a 100% guarantee. Ansari, who calls himself the Baap of Chart, on social media, has about 4.4 lakh followers on YouTube and more than 7 crore views. His X profile claims that he is managing a Rs 30 crore-fund and aims to take it to Rs 1,000 crore.
Sebi shows finfluencer ‘Baap of Chart’ who's the big daddy of Dalal Street
Sebi observed that the finfluencer was promoting himself as a stock market expert on various social media platforms and luring investors to enrol for various ‘educational courses’ offered by him and induced them to invest in securities market by convincing them about the prospect of making profits with near certainty if the recommendation is followed.
Sebi chief decodes 'sayanapanti' of algo sellers, finfluencers, Indore-type advisors
As a regulator, Buch said, we cannot afford to have one lakh of Indore-type investment advisors. “I have personally gone through and seen people being driven to suicide because of the bad things that happen in the market.” Citing that a large number of 35% of investment advisors are still not registered with the regulator, she said.
How tech stacks can help shape fair and impartial finfluencer landscape
Despite all the insightful bytes they may share with their loyal followers, finfluencers are not without their drawbacks and limitations. One of the major challenges is the lack of regulation and accountability in the finfluencer space. Unlike registered investment advisers or financial planners, finfluencers do not need any formal qualifications or certifications to offer financial advice.
ETtech Explainer: Decoding the buzz around Sebi’s finfluencer guidelines
While many finfluencers provide valuable insights, there has been a growing concern over the potential risks associated with those who might offer biased or misleading advice on “how to get rich quick” or “how to be a crorepati by 30” or even “how to retire at 40”.
Sebi faces an uphill battle against ‘finfluencers’
If the Securities and Exchange Board of India had hoped that its action would produce a chilling effect across the country’s fast-growing horde of unregulated financial influencers, that didn’t happen.
Sebi to curb finfluencers to help investors get accurate, unbiased info
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. They usually work on a commission-based model.
Explainer: What SEBI’s proposed rules for finfluencers mean for retail investors
The capital market regulator has been talking about finfluencers and the potential risks they pose by intervening in the investment decisions of investors at various forums.
Sebi to treat finfluencers selling crorepati dream as fraudulent, misleading activity
Sebi also wants regulated entities like brokers, mutual funds and exchanges to stop dealing with unregistered finfluencers. After a board meeting on Wednesday night, Sebi chairperson Madhabi Puri Buch said a discussion paper to regulate financial influencers will be out in the next couple of months.
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