Finfluencers

Why in News?

• Recently, The Securities and Exchange Board of India (SEBI) is working on guidelines for financial influencers — popularly known as ‘finfluencers’

Highlights

• Finfluencers are people with public social media platforms offering advice and sharing personal experiences about money and investment in stocks.
• Their videos cover budgeting, investing, property buying, cryptocurrency advice and financial trend tracking.
• The number of ‘unregistered’ investment advisors giving unsolicited ‘stock’ tips on social media platforms has increased dramatically.
• In addition, certain companies used social media platforms to boost their share prices through finfluencers.
• There is no difference between listed companies and non-listed companies when it comes to fraud, more so now that digital data thefts and technological risks are on the rise.
• Diversion of funds/ assets not only leads to erosion of wealth for shareholders, creates anarchy and financial crisis but also leads to ethical crisis and reputational risk.
• SEBI is a statutory body established in 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
• The basic functions of the Securities and Exchange Board of India is to protect the interests of investors in securities and to promote and regulate the securities market.
• It’s headquartered is in Mumbai, India.
• SEBI is a statutory body established in 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
• The basic functions of the Securities and Exchange Board of India is to protect the interests of investors in securities and to promote and regulate the securities market.