Sebi raps finfluencers, 8,890 misleading securities market posts flagged for legal action

- SEBI has flagged 8,890 instances of unlawful or misleading content on social media, notifying platforms like Facebook, Instagram, Telegram, and YouTube to take legal action. - The regulator's crackdown aims to curb the spread of false stock market advice by unregistered financial influencers, or finfluencers, who often promise guaranteed returns and use technical jargon to mislead investors. - SEBI's new regulatory framework prohibits registered entities from collaborating with unregistered financial promoters on social media, including any form of monetary transactions or client referrals. - The Investment Advisors Administration and Supervisory Body (IAASB) now monitors social media activity of investment advisors, who must disclose their social media presence twice a year. - Influencers involved in 'pump and dump' schemes, like P R Sundar and Syyed Shujauddin, have faced bans and heavy fines for unauthorized financial advice. Source: Moneycontrol