Mumbai, capital markets watchdog Sebi on Thursday decided to regulate financial influencers or finfluencers amid growing concerns over the potential risk associated with such persons.
Chairperson Madhabi Puri Buch also raised concerns about the macroeconomic implications of speculative betting by retail investors in the futures and options (F&O) segment.
She said people are borrowing money and household savings are being depleted due to these bets and announced that Sebi has formed a task force of experts to investigate this.
Regarding fininfluencers, to address concerns related to certain persons, including unregulated entities, inducing investors to deal in securities based on inappropriate statements, the Sebi board approved rules to restrict associations between its regulated entities and persons not registered.
This came amid growing concern about the potential risks associated with unregulated influencers who could offer biased or misleading advice. They usually work with a commission-based model.
Persons regulated by Sebi and agents of such persons shall not have any association such as any transaction involving money, customer referral, interaction of information technology systems with any other person who, directly or indirectly, provides advice, recommendation or make explicit claims. of return or fulfillment.
Finfluencers have had a significant impact on the financial decisions of their followers in recent years and therefore, Sebi's regulatory framework can hold them responsible for the advice they provide.
Additionally, the regulator has decided to create a closed ecosystem for collection of fees by Sebi-registered investment advisors (IAs) and research analysts (RAs) from their clients.
Buch said the T+O agreement has achieved the intended objectives of testing the technology and establishing India's capability to make such a system work from the launch of the Beta version in 25 stocks.
The regulator will now deliberate on how to move forward on the matter, she said.
Sebi's board also approved a proposal to remove imposition of financial disincentives on Managing Director and Chief Technology Officer of stock exchanges and other Market Infrastructure Institutions (IMIs) for technical glitches.
The regulator is also toughening its actions against market manipulators thanks to advanced technological inputs, he said, adding that action will also be taken against boardroom shenanigans of SMEs.
She declined to speak on issues related to Quant MF, saying that she does not comment on specific aspects of the case.
SEBI's board also approved proposals on ease of doing business on various aspects, and Buch said the market should expect more such moves in the future.
Chairperson Madhabi Puri Buch also raised concerns about the macroeconomic implications of speculative betting by retail investors in the futures and options (F&O) segment.
She said people are borrowing money and household savings are being depleted due to these bets and announced that Sebi has formed a task force of experts to investigate this.
Regarding fininfluencers, to address concerns related to certain persons, including unregulated entities, inducing investors to deal in securities based on inappropriate statements, the Sebi board approved rules to restrict associations between its regulated entities and persons not registered.
This came amid growing concern about the potential risks associated with unregulated influencers who could offer biased or misleading advice. They usually work with a commission-based model.
Persons regulated by Sebi and agents of such persons shall not have any association such as any transaction involving money, customer referral, interaction of information technology systems with any other person who, directly or indirectly, provides advice, recommendation or make explicit claims. of return or fulfillment.
Finfluencers have had a significant impact on the financial decisions of their followers in recent years and therefore, Sebi's regulatory framework can hold them responsible for the advice they provide.
Additionally, the regulator has decided to create a closed ecosystem for collection of fees by Sebi-registered investment advisors (IAs) and research analysts (RAs) from their clients.
Buch said the T+O agreement has achieved the intended objectives of testing the technology and establishing India's capability to make such a system work from the launch of the Beta version in 25 stocks.
The regulator will now deliberate on how to move forward on the matter, she said.
Sebi's board also approved a proposal to remove imposition of financial disincentives on Managing Director and Chief Technology Officer of stock exchanges and other Market Infrastructure Institutions (IMIs) for technical glitches.
The regulator is also toughening its actions against market manipulators thanks to advanced technological inputs, he said, adding that action will also be taken against boardroom shenanigans of SMEs.
She declined to speak on issues related to Quant MF, saying that she does not comment on specific aspects of the case.
SEBI's board also approved proposals on ease of doing business on various aspects, and Buch said the market should expect more such moves in the future.
