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Moves proposed by Sebi last month not only ensure that investors receive accurate and unbiased information but also help in preserving authenticity and reducing fraud, Anand Rathi Wealth Deputy CEO Feroz Azeez told PTI.
Under the proposal, finfluencers need to be registered with SEBI and adhere to specific guidelines. Also, it has been proposed to ban unregistered finfluencers from partnering with mutual funds and stockbrokers for promotional activities.
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.
Under the proposal, finfluencers need to be registered with Sebi and adhere to specific guidelines.
The proposal to restrict regulated entities’ tie-up with unregistered finfluencers has raised a lot of questions. Even the current regulations say that a person cannot be appointed as an authorised person by more than one brokerage.