The Growing Influence and Regulation of Finfluencers.
The headline on June 27th in newspapers, "SEBI cracks down on finfluencers, streamlines voluntary delisting process," is not normal and highlights the need of the hour.
In the post-pandemic world. Finfluencers, or financial influencers, are increasingly providing financial advice without being licensed or qualified, posing significant risks to investors. They often simplify complex financial concepts, leading consumers to abandon traditional registered advisors, which can undermine financial stability.
SEBI, and the Advertising Standards Council of India are working together to address this issue. Currently, finfluencers are subject to general regulations like Section 12-A of the SEBI Act and the PFUTP Regulations, which prohibit fraudulent and misleading practices. However, these do not specifically target finfluencers.
To increase accountability, SEBI has proposed new guidelines requiring finfluencers to register and possess necessary qualifications. This move aims to ensure transparency and reliability in financial advice.
But the challenge is bigger than it seems. In addition to finfluencers, a plethora of individuals influence various aspects of life, from suggesting diets based on supplements and medicines to offering medical-related advice, career and education guidance, and even amateur journalism on YouTube. Many claim to be experts in geopolitical and national security matters on podcasts and YouTube shorts.
All of this needs to be managed carefully to prevent misuse, despite having numerous specific regulators. SEBI's efforts are still in the early stages, and the regulator must balance free speech with the need for accurate and unbiased information.
Further, Imagine a world where senior bureaucrats, government officers, and even ministers trade their official memos for microphones and their secret dossiers for social media fame. Picture them spilling the beans on classified matters while lounging on a podcast, casually discussing state secrets as if they were sharing recipes. Instead of navigating through complex policies, they're now navigating YouTube analytics, Indirectly delighting people with every "like" and "subscribe for an amateur YouTuber". And let's not forget their latest trend—writing tell-all books that make you wonder if "confidential" is just a suggestion. It's as if they swapped their suits for selfie sticks, turning the corridors of power into the algorithms of amusement. What's next?
In this brave new world, the line between a public servant and a social media influencer has never been blurrier—or funnier.
Pen and sword have died a long ago and camera with social media is the new synonym for guns and bullets.
How does that sound?
#SEBI #Finfluencers #FinancialRegulation #InvestorProtection #SocialMedia #Misinformation #FinancialAdvice #PublicHealth #DigitalInfluence #FinancialLiteracy #Youtube
Oh my gosh what a great job for someone really creative and animal loving.