‘Finfluencers’ VS SEBI: Are battle lines being drawn?

Recent clashes between SEBI and fin influencers have kicked up a storm

Financial influencers, also known as ‘finfluencers’, by definition are social media content creators, who share tips on how to save, grow and look after your money. They offer advice on the funds to invest in (usually defunct), the stocks to invest in (penny ones only), the instruments to trust (heard of crypto?) and the place to double your money. Sounds perfect, right? No wonder the followers are huge.

Finance and investments are jargon decoded by these influencers. After numerous incidents over the past few years and earning crores, ‘finfluencers’ are now under SEBI’s radar. A recent advertisement in a daily newspaper by a ‘finfluencer’ has caused huge waves and angst and is an example of the influencer’s reach.

Our questions	Answers
Can SEBI regulate the influencers who are not Registered Investment Advisors (RIAs)?	Yes, to a certain extent their activities can be curtailed.
Can they (influencers) give stock advice?	No
Messages on Bank Nifty Expiries tips?	No
Can influencers give TIPs?	Big no
Can influencers help in decoding the financial jargon?	Yes
Where do we draw the fine line between education and advice?	This is a massive money spiralling industry, and the lure of quick money is too good to resist.

SEBI is formulating definite rules, to clear the ambiguity which will help in saving crores of rupees of investors and traders. The recent incident of the ‘finfluencer’, PR Sunder – who has more than 10.7 Lakh YouTube subscribers – being fined more than Rs. 6 Crore, and banned from trading in securities for a year, was reflected in a comment from the finance ministry.

The community is waiting for the cat to be belled now.

Lavanya Iyengar