In a recent move to regulate the burgeoning field of financial influencers, the Securities and Exchange Board of India (SEBI) has taken strict measures against individuals offering investment advisory services without proper registration. The crackdown comes as a response to the growing concerns about the authenticity and legality of financial advice provided by influencers in the banking, financial services, and insurance (BFSI) sector.
Mangayakarasi Sundar, a notable finfluencer, has agreed to pay a settlement amount of Rs 46.8 lakh to SEBI for providing investment advisory services without regulatory approval. This settlement includes a disgorgement of Rs 6 lakh, covering the profits earned from the unregistered advisory services, along with interest. The move sends a clear message about the consequences of non-compliance with SEBI regulations.
SEBI has also issued a warning to finfluencer Gunjan Verma in connection with allegations of offering investment advisory services without the necessary registration. These actions align with the guidelines set by the Advertising Standards Council of India (ASCI) in the BFSI sector, emphasizing the need for influencers to obtain SEBI registration for offering financial advice.
The revised guidelines stipulate that registered influencers must prominently display their registration numbers, names, and qualifications when providing investment-related advice. These measures are aimed at enhancing transparency and safeguarding the interests of investors who seek financial guidance from influencers in the BFSI domain.
As SEBI intensifies its efforts to regulate the investment advisory landscape, influencers are urged to comply with the guidelines to ensure the authenticity and legality of their services. The crackdown serves as a pivotal moment in shaping the future of financial advice dissemination through digital platforms.
