Financial influencers are advocating SEBI to provide clear guidelines on permissible activities for influencers and create a special category that can help them continue their business.
The trend of investing in share market is increasing. People think that this is a good way to earn money quickly. Many financial influencers take advantage of this and influence people’s financial decisions with their opinion in exchange for huge amounts of money. The Securities and Exchange Board of India (SEBI) has made preparations to curb such influencers for the interest of investors.
SEBI has recently banned Mohammad Naseeruddin, popularly known as ‘Bap of Chart’ on social media, and two other influencers. They are barred from providing investment advice without the required registration. He was accused of misleading investors for his own benefit.
Process to become an advisor
Two well-known financial influencers, super traders Lakshya and Shivkumar expressed their views on this matter on CNBC-TV18. He acknowledged that the process of becoming a Registered Investment Advisor is challenging and may be an unreasonable demand for the industry. He also stressed the importance of influencers refraining from giving stock tips.
Shivakumar Jayachandran said, SEBI’s action against ‘Baap of Chart’ is justified. Still, SEBI’s rule of 10 years of experience is quite strict.” Shivakumar Jayachandran is a trader and financial influencer.
SEBI’s limitations
Trader and influencer Lakshya Singh said, “Finfluencers should have a clear understanding of their limitations. SEBI should also think about streamlining the process of obtaining a registered investment advisor license before passing any judgment on their action.”
Financial influencers are advocating SEBI to provide clear guidelines on permissible activities for influencers and create a special category that can help them continue their business.
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