We are seeing a number of finfluencers in the social media and the count is increasing rapidly as the day goes by. And every other finfluencers have their view as well as the way to earn money from the customers. Like some are selling their courses, some are giving tips on private channel and what not.
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Now the problem is when the finfluencers show their data on the social media platform there is no way to find out is that real or not. Or is the winning stock by luck or by strategy. Now just by looking at one trade or strategy people try to spend on taking more services. And this is what the SEBI is trying to stop.
According to CNBC TV18,
SEBI's move to regulate finfluencers and payments to research analysts and investment advisors represents a significant development in the financial industry. While challenges remain, this proactive approach by SEBI is seen as a positive step toward ensuring transparency and accountability in the world of financial advice and education provided through digital influencers.
So in simple terms the SEBI wants to have the transparency and accountability from the finfluencers. Like they should show their portfolio and they should be accountable for all the tips they are giving for. And I have seen that finflunecers have started giving their portfolio update from the last 1 year or so to become more transparent. And this is a good sign because you might be doing 100s of trades but you show only 1 or 2 winning trade which is quite bad and not transparent.
So yeah it is a good move from the SEBI and thus it is in the right direction. Now people should choose them to follow who are transparent and provides the full details of everything including their trades.
