Regulations On Financial Influencers:
SEBI has barred regulated entities from making claims about investment returns, aiming to protect investors from misleading information.
- The regulator has also tightened criteria for stocks in the F&O market, requiring them to meet specific market value and trading volume thresholds.
- Fin-fluencers are individuals who use public social media platforms to share advice and personal experiences about money, investments, stocks, budgeting, property buying, cryptocurrency, and financial trends.
- The need for regulations arises due to the surge in unregistered investment advisors providing unsolicited stock tips on social media, alongside companies using influencers to manipulate share prices.
- This trend poses risks of fraud, digital data theft, and financial crises, impacting shareholder wealth, ethics, and corporate reputations.
