Follow finfluencers' tips at your own risk

As SEBI tightens its grip on unregistered finfluencers, it serves as a stark reminder for investors to exercise caution

- ARSHAD KHAN @ New Delhi

In a significant move, the Securities and Exchange Board of India (SEBI) has taken stringent action against Asmita Patel, Asmita School Global, and four other associates, spotlighting the growing risks associated with unregistered financial influencers, or 'finfluencers,' and their impact on retail investors. SEBI has impounded over ₹53 crore collected by these entities as fees for various investment-related courses, marking a pivotal moment in the regulator's efforts to curb unregulated financial advice.

According to SEBI's order, Patel allegedly provided stock recommendations to investors through private Telegram channels, Zoom meetings, and educational courses without obtaining the mandatory registration from the regulator. The order further revealed that Patel encouraged participants to quit their jobs and enroll in her course, MPAT, promising them the opportunity to achieve "something big."