The move from capital market watchdog comes after the increasing number of social media influencers on multiple social media platforms that advise and recommend trades without a license.
The market regulator is likely to roll out guidelines to govern the growing base of financial influencers on social media.
#NewsAlert | @SEBI_India is working on guidelines to regulate financial influencers; guidelines to govern growing… https://t.co/qvLDPXPtDe
— ET NOW (@ETNOWlive) 1668672670000
However, currently, there is no regulatory framework or guidelines to stop these activities. Sebi aims to establish a mechanism to curb such advice which may have an effect on investors’ wealth.
The need for guidelines for social media influencers has been in buzz lately with the rising culture of application-based content, where popular influencers promote a particular asset without a proper license to do so.
Earlier, Sebi had curbed Whatsapp groups and Telegram channels, where unauthorized and anonymous entities were sharing trading advice with investors.
