Earlier, Sebi clamped down on some WhatsApp groups and Telegram channels, which were used to leak key market moving data.
Markets watchdog Securities and Exchange Board of India will come out with a discussion paper to frame guidelines to control unsolicited financial and stock market advice from social media influencers as also from unregulated investment advisors.
Sebi’s proposal comes against the backdrop of many social media influencers providing advice about stock investments without a licence.
Social media platforms are not always the most reliable source of information, and opinions on such platforms can be heavily influenced by emotions, rumours, or misinformation.
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Addressing a meeting of the Association of Registered Investment Advisers, Sebi’s whole time member Ananth Narayan Gopalkrishnan said some unscrupulous people are misusing their Sebi registration to further their businesses and as the regulator ‘we don’t want (that) to happen’.
“We’ll come out with a discussion paper seeking inputs for making effective measures to control unsolicited financial and market advises from social media influencers and also from unregulated investment advisors. After inputs from market participants, and other stakeholders, we’ll issue guidelines to rein them in,” news agency PTI quoted Gopalkrishnan as saying.
There is also the issue of unregistered investment advisors, who pose greater risks to gullible investors. More important, “we see examples of misuse of their Sebi registrations by even some registered advisors,” he said.
“We want self-regulatory bodies to evolve so that some bodies beyond Sebi can do the policing. We’re concerned about unregistered investment advisors and social media is enhancing that,” he noted.
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Many people on social media may not have any professional expertise or experience in the stock market, and their advice or opinions may be based on limited information or biased perspectives. Therefore, it is important to be cautious and do your own research before making any investment decisions.
Social media posts are not tailored to your individual needs, financial situation, risk tolerance, or investment goals. Therefore, the advice provided may not be appropriate for your specific circumstances.
It is always advisable to seek guidance from qualified and experienced financial advisors before investing your money in the stock market.
Earlier, Sebi clamped down on some WhatsApp groups and Telegram channels, which were used to leak key market moving data.
(With PTI inputs)
