SEBI Working On Guidelines For Financial Influencers Giving Stock Tips On YouTube, Other Social Media Platforms

Market regulator Securities and Exchange Board of India (SEBI) has said that it is working on guidelines for financial influencers, reports Livemint.

A financial influencer, or 'finfluencer', is a person who gives information and advice to ordinary investor on an array of financial topics such as stock market trading, personal finance and mutual funds on various social media platforms including Telegram, Facebook, YouTube, WhatsApp and Instagram.

These finfluencers post videos on YouTube and other social media platforms, mostly in Hindi or a regional language, or even ‘Hinglish’, a mix of Hindi and English, to attract the non-English speaking, newly-minted investors from small towns.

Ordinary people, who want to invest in the market, have started to follow them in droves on their social media pages or channels, with most popular 'finfluencers' commanding a following running into millions.

“We are working on the guidelines for financial influencers," S K Mohanty, whole-time member of SEBI, was quoted by Livemint as saying on the sidelines of a conference in Mumbai.

The development reportedly comes after the market regulator witnessed an exponential rise in the number of various ‘unregistered’ investment advisors giving unsolicited social media ‘stock’ tips on various social media platforms.