SEBI's New Stance: Redefining Investor Education Rules

SEBI Chairman Tuhin Kanta Pandey announced upcoming rule changes to prevent the use of live market data for investor education. This follows a hefty penalty imposed on 'finfluencer' Avdhoot Sathe. Pandey emphasized the need for credible performance data and noted inconsistencies in SEBI's educational regulations.

SEBI Chairman Tuhin Kanta Pandey announced on Monday that the markets regulator would soon introduce changes to prohibit the use of current live market data for investor education.

This decision comes in the wake of a significant penalty and a Rs 546 crore disgorgement order against 'finfluencer' Avdhoot Sathe. Despite the controversy, Pandey asserted there is no 'regulatory vacuum,' suggesting the issue lies in a 'lack of understanding'.

Pandey acknowledged an inconsistency in SEBI's circulars over educational use of live market data, promising future clarity. He emphasized the necessity for credible data to guide investment decisions responsibly, citing a survey where 62% of respondents relied on finfluencer recommendations.

(With inputs from agencies.)