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Sebi Action: Market regulator SEBI has made some rules strict for those giving investment information about stocks and funds on social media. Now those giving advice will have to provide information about their registration.
New Delhi. Market regulator SEBI has tightened its grip on Guru Ghantals who give knowledge on stock market and stocks on social media. SEBI has made strict rules for this. The market regulator has said that now some important information will have to be given to give information about any stock and fund on social media and to give investment advice in it.
Sebi on Friday proposed that all its regulated entities and their agents (mutual fund distributors, portfolio management service distributors etc.) clearly display their registered name and registration number on the ‘home page’ of their social media platform. Apart from this, this information will also have to be given with every video or ‘content’.
Why did SEBI make such a proposal?
This proposal has come because SEBI has found that there is content on social media from regular and unregistered people, due to which investors are being misled. In such a situation, by showing the name and registration number, investors will immediately know whether the content is from an authorized institution or not. SEBI said in its advisory letter that any ‘content’ posted on social media should not promise fixed returns, any such thing should be banned by law and no attempt should be made to take advantage of the lack of information among investors.
