If you rely on stock market influencers on YouTube or Instagram for buying or selling stocks, it’s time to exercise caution.
In 2024, strict actions were taken against several individuals who misled people about the stock market. Recently, one such influencer faced legal action.
Additionally, the Securities and Exchange Board of India (SEBI) has banned over 15,000 content websites this year.
SEBI action
As per a report by the Times of India, the Securities and Exchange Board of India (SEBI) has taken significant action this year against those misleading people with incorrect information about stock market investments.
SEBI has banned over 15,000 content sites and several financial influencers.
These individuals are accused of misleading investors by sharing faulty investment advice on social media, leading to the loss of their hard-earned money.
Against whom did SEBI take action
This year, SEBI took action against several prominent financial influencers, including Ravindra Balu Bharti and Naseeruddin Ansari.
Ansari, known as ‘Baap of Chart’ on the social media platform X (formerly Twitter), gave stock buying and selling advice.
SEBI has directed Ansari and his associates to open an escrow account and deposit Rs 17 crore. This amount will be used to refund the investors who used their services.
In addition, Ansari has been fined Rs 20 lakh. His associates, including Padmati, Tabrez Abdullah, Wani, and Vamshi, have each been fined Rs 2 lakh.
Shubhangi Ravindra Bharti, Rahul Anant Gosavi, and Dhanashree Chandrakant Giri have also been banned from participating in the stock market.
How the game was played
SEBI’s investigation found that these influencers promoted specific stocks without disclaimers.
They received money from companies in exchange for recommending their stocks.
This not only misled investors but also caused a rise in stock prices, violating market rules.
The growing craze of Finfluencers
Financial influencers, or “finfluencers,” are gaining popularity on social media. They often claim to offer strategies for making quick money in the stock market.
While some share accurate information, many take advantage of their followers’ trust.
For this reason, SEBI has advised investors to seek advice only from certified investment advisors. Following social media advice without proper research can be risky.
