'Sebi is planning to regulate finfluencers'

Markets regulator the Securities and Exchange Board of India (Sebi) is planning to bring finfluencers under the ambit of the market norms, said Kamlesh Varshney, whole time member, Sebi.

- Pavan Burugula

Speaking at the Mint Annual BFSI Summit & Awards, Varshney reiterated that Sebi was not against short selling, however naked short selling cannot be allowed in India. He also added the markets regulator is mindful that sometimes too many changes to rules may create fatigue and Sebi is looking to tweak the rules only in areas where there is immediate risk.

The comments by the Sebi come at a time when regulating unregistered finfluencers has turned into a major issue in the securities market as thousands of gullible investors are falling prey for such unregistered financial advice.

The regulator has already undertaken a crackdown on finfluencers, who were providing illegal investment advice through social media. Sebi has also placed restrictions on intermediaries such as brokers and mutual funds from using the services of such unregistered finfluencers for promotion of their products.

Varshney said, now Sebi was looking to bring these finfluencers under the regulatory net so that their activities can be better monitored.

“The first task should be that most of the people(finfluencers) should be in the regulatory net so that it is easy to monitor them, so that it is easy to see that they are complying with the security laws. If there are a few people who are violating, then it is easy to catch them." Varshney said.