New Delhi. Nowadays, many people or fininfluencers on social media work to give illegal and misleading information about the stock market. Many people invest in the market by following their advice and lose their hard-earned money. Now there is no mercy for such people. In fact, many fininfluencers have come under the radar of market regulator SEBI. The Securities and Exchange Board of India has identified 8,890 posts on social media giving incorrect information related to the stock market, in which legal action will be taken.
SEBI has given information about the related platforms and apps in this regard. These include Facebook, Instagram, Telegram, YouTube etc. Legal action will be taken against them for making false claims about the market.
The growing influence of fininfluencers
For the past one year, SEBI has been trying to curb such misleading or illegal advice given by financial influencers or fininfluencers. The government told the Rajya Sabha, “As of July 17, 2024, SEBI has informed about legal action to 8,890 social media platforms related to illegal/misleading social media content related to the stock market.”
Giving investment advice without registration
Most of these influencers are self-proclaimed who are giving stock tips and investment advice to investors without registration. This increases the risk for investors. The market regulator has said that investors are promised guaranteed returns. Technical terms are used to keep them confused. Misleading evidence is given in social media and ads.
Tags: Share market, Stock market
FIRST PUBLISHED : July 31, 2024, 18:29 IST