Which of the following is planning to regulate Financial Influencers (Finfluencers) in India?

Question

Question

This question was previously asked in

SBI PO Mains Memory Based Paper (Held On: 30 Jan 2023 Shift 1)

Answer 1

The correct answer is SEBI.

Key Points

The Securities and Exchange Board of India (SEBI) is reportedly working on a framework to regulate financial influencers.
The framework is expected to include the following provisions:
- Registration and licensing: Financial influencers would need to register with SEBI and obtain a license to operate in India.
- Education and training: Financial influencers would need to undergo education and training on financial markets and products.
- Disclosure requirements: Financial influencers would need to disclose their conflicts of interest and any remuneration they receive for promoting financial products or services.
- Complaints mechanism: Investors would have a mechanism to lodge complaints against financial influencers who violate the regulations.

Additional Information

In addition to SEBI, the Advertising Standards Council of India (ASCI) also has some guidelines for influencers who promote products or services on social media. These guidelines include the following:
- Influencers must disclose if they are being paid to promote a product or service.
- Influencers must not make any false or misleading claims about a product or service.
- Influencers must not target children with their promotions.