IT WAS A long time coming. Financial influencers, or ‘finfluencers’ in market parlance, had been under the scanner for a while. Government officials and regulatory bodies—across the globe—had thought long and hard on ways to regulate the actions of these individuals as some of them had assumed cult status with millions of followers on social media platforms.
Besides, the regulators had to act fast to ensure that unsuspecting investors would not end up losing money because of biased or unfair advice or recommendations.
Finally, capital markets regulator Securities and Exchange Board of India (Sebi), on May 25 sent a strong signal to finfluencers. It barred P.R. Sundar, a finfluencer with over a million followers on YouTube, from the securities markets for a year for allegedly providing advisory services—daily stock investment/trading calls— without registering with the regulator. He was also directed to disgorge the fees that he had taken—along with interest—that amounted to ₹6.08 crore.
Simply put, a finfluencer is a person who influences the financial investment decisions of his/her followers by doling out advice or recommendations. Such advice could be for stock investment, financial planning, or just about anything related to the manner in which one should invest his or her money.
CULT STATUS
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