- Finfluencers are no more…
- SEBI on action mode!
- Legal action will be taken against those giving wrong tips
SEBI Action On Finfluencers : Do you also invest in share market” (Action On Finfluencers)
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Sebi chairman Tuhin Kanta Pandey said the regulator has removed approximately 6,000 to 7,000 such misleading posts from social media every month.
The noose on 'Pump and Dump' has been opened
SEBI Chairperson Kanta Pandey made clear comments on many important issues in a program. He launched his ambitious program 'Project Jagurt', which aims to create awareness among investors and help them avoid fraud. He explained that many influential persons in connivance with the promoters are indulging in scams such as 'pump and dump' the price of shares to be deliberately inflated and then sold, and SEBI is keeping a constant vigil on these persons.
Giving advice without a license is dangerous
The SEBI chief made it clear that when these financial advisors overstep their bounds, the real problem starts. If someone, without a license or regulatory registration, gives strong advice about buying a particular stock or adopting a particular investment strategy, it is highly irresponsible and can cause huge losses to investors. “This is completely wrong and we reserve the right to take strict action against such persons,” the SEBI chief said.
Who is being prosecuted?
According to Pandey, there are three main types of fin-influencers:
which are registered with SEBI and operate within the regulatory framework.
Those who are not registered, but only share their opinions or knowledge.
Those who violate the rules and offer unlicensed tips without a license.
In this context, SEBI is taking action against the third category of persons. As part of this action, not only is their content being deleted, but the profits they have illegally earned are also being confiscated based on evidence. In many cases, SEBI is banning such persons from the stock market.
What should young investors do?
Advising new and young investors, the SEBI chairman said investing is very easy if you understand the concepts. But, blindly investing in any stock without understanding anything is a completely wrong approach. We want to convey this message to everyone: first learn, then invest.
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