SEBI to issue regulations for finfluencers: Heres what to expect
Experts are of the view that the new set of guidelines will help ensure transparency and accuracy in conversations.
The Securities and Exchange Board of India (SEBI) recently announced that it is working on a set of guidelines for financial influencers, commonly referred to as finfluencers. The development comes amid a surge in the popularity of finance influencers on social media platforms.
What promoted SEBI to plan regulations for Finflunencers?
According to Ayush Shukla - Creator and Founder, Finnet Media - finance influencers are gaining momentum, which also means there’s a lot of conversation on what finance influencers can talk about and what should be avoided.
"A lot of creators somehow are missing out on the legal aspect of conversations and that’s where the guidelines will come into play," Shukla said.
Sharan Hegde - Finance Creator, Finance With Sharan - echoing the same sentiment said that there was an urgent need to address what can be or cannot be spoken about.
"Paid promotions and illegitimate advise were becoming common, hence to avoid these things, it was necessary to regulate the unorganized sector," Hegde added.
What To Expect?
Experts are of the view that the new set of guidelines will help ensure transparency and accuracy in conversations.
"Globally, guidelines have been in place for correct usage of social media, and it is only in the correct interest of the consumer that this needs to come in play. However, a lot will depend on what these guidelines actually are to understand the exact impact," Shukla said.
Hegde said that the guidelines will bring immense clarity in what finfluencers can talk about.
"While the creative process remains uninterrupted, it will help strengthen the reliability of the content. It will be a welcoming move given that the interest of all stakeholders is taken care of," he added.
Who will be covered under new guidelines?
The guidelines will be applicable across all social channels (YouTube, Twitter, Facebook, Instagram and others) as creators across channels have become a strong channels of communication/ promotional tools for brands.
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