In a major regulatory move, the Securities and Exchange Board of India (Sebi) has removed over 15,000 content sites run by unregulated financial influencers in the past three months. This crackdown is part of Sebi’s broader initiative to safeguard investors and curb misleading financial advice from unauthorized sources.
Kamlesh Varshney, a Sebi wholetime member, emphasized the regulator’s commitment to balancing investor education with stringent regulation. He highlighted that these content sites were taken down with the help of technology platforms, following Sebi’s directive to restrict regulated entities from collaborating with unregistered financial influencers. Varshney expressed concerns that these influencers were misleading investors and contributing to financial losses, leading to numerous investor complaints.
In addition to removing the content, Sebi has urged technology platforms to develop systems to identify and monitor unregulated financial advice. This move aims to enhance oversight and protect investors from potential scams.
At the Global Fintech Fest, Varshney also discussed Sebi’s ongoing efforts to relax some restrictions for registered investment advisers (RIAs) and research analysts (RAs). The regulator has received over 1,000 responses to its proposal for easing these rules, which aims to lower entry barriers and clarify regulatory grey areas. Sebi’s board is expected to review and potentially approve these changes in their upcoming meeting in September.
Varshney reflected on the evolution of trading over the past two decades, noting how technological advancements have transformed the financial markets. He anticipates further technological innovations will continue to reshape the industry in the near future.
Additionally, Sebi will be releasing a discussion paper by the end of the year addressing potential regulatory adjustments for initial public offerings (IPOs) by small and medium enterprises, as announced by fellow wholetime member Ashwani Bhatia.
