SEBI Cracks Down on Unregistered Financial Influencers

The Securities and Exchange Board of India (SEBI) has approved new regulations to govern unregistered financial influencers or 'finfluencers.' This decision aims to mitigate risks such as biased or misleading advice. Additionally, SEBI announced various other regulatory updates regarding delisting processes and financial disincentives following technical glitches.

The Securities and Exchange Board of India (SEBI) has taken a significant step to rein in unregistered financial influencers, commonly known as 'finfluencers.' On Thursday, the board approved new norms to regulate these individuals.

Concerns have been mounting over the potential dangers posed by unregulated finfluencers, who often operate on a commission-based model and can provide biased or misleading financial advice. SEBI aims to protect investors by bringing these influencers under regulatory oversight.

In addition to this, SEBI has introduced a fixed price mechanism for delisting frequently traded shares and a new delisting framework for Investment and Holding Companies (IHC). Furthermore, the regulator has moved to eliminate financial disincentives for Managing Directors (MD) and Chief Technology Officers (CTO) of exchanges and other market infrastructure institutions (MIIs) in the event of technical glitches.

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