The Securities and Exchange Board of India (SEBI) will issue a consultation paper to control unsolicited financial and stock advice provided by unregistered investment advisors and social media influencers. SEBI will develop guidelines for this based on feedback from the consultation paper.
“We (SEBI) will come out with a discussion paper seeking inputs for making effective measures to control unsolicited financial and market advices from social media influencers and also from unregulated investment advisors,” SEBI member Ananth Narayan Gopalkrishnan said at a meeting of the Association of Registered Investment Advisers. We will issue guidelines to rein them in after receiving input from market participants and other stakeholders.”