SEBI member Ananth Narayan Gopalkrishnan stated that SEBI registration norms have been getting misused by some businesses
“We want self-regulatory bodies to evolve so that some bodies beyond SEBI can do the policing. We are concerned about unregistered investment advisors and social media are enhancing that,” Gopalkrishnan said
He shared that unregistered investment advisors are also posing threat to credulous investors and there are also instances of regulated investment advisors misusing SEBI registrations
Stock exchange regulatory body Securities and Exchange Board of India (SEBI) will reportedly come up with a consultation paper to control unsought financial and stock advice given by unregistered investment advisors and social media influencers. For the same, SEBI to frame guidelines based on the inputs received from the consultation paper.
Attending a meeting of the Association of Registered Investment Advisers, SEBI member Ananth Narayan Gopalkrishnan said, “We (SEBI) will come out with a discussion paper seeking inputs for making effective measures to control unsolicited financial and market advices from social media influencers and also, from unregulated investment advisors. After inputs from market participants, and other stakeholders, we will issue guidelines to rein them in.”