Sebi's Buch on finfluencer regulation: 'Something is cooking'

Securities and Exchange Board of India chairperson Madhabi Puri Buch hinted that discussions were on to implement guidelines regulating financial influencers, who have significant following across social networks.

- Sashind Ningthoukhongjam

In response to Mint's query on the need to regulating stock brokers having revenue-sharing arrangements with finfluencers, Bush said: "Something is cooking." However, the Sebi chief refrained from divulging further details during an event hosted by the Association of Mutual Funds in India (AMFI).

Finfluencers typically promote affiliate links for opening trading accounts across social media platforms, such as Youtube and Instagram, as well as on their own websites. Every time a user initiates a trade via accounts opened through the links, the respective stock broker offers a percentage of the brokerage fee to the influencer who had posted the link to woo prospective clients.