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Code of Conduct for Finfluencers in India

The document discusses the need for a code of conduct for financial influencers in India due to concerns over security issues and lack of transparency. It recommends adopting strict policies like other major economies with strict rules and licensing requirements for influencers. The proposed code of conduct should clearly define influencers, cover all content mediums, protect consumers, require transparency, and ensure influencers adopt their own investment advice.

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Priya Shukla
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37 views1 page

Code of Conduct for Finfluencers in India

The document discusses the need for a code of conduct for financial influencers in India due to concerns over security issues and lack of transparency. It recommends adopting strict policies like other major economies with strict rules and licensing requirements for influencers. The proposed code of conduct should clearly define influencers, cover all content mediums, protect consumers, require transparency, and ensure influencers adopt their own investment advice.

Uploaded by

Priya Shukla
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

FINFLUENCER – WHAT CODE OF CONDUCT SHOULD WE HAVE?

A Financial Influencer or ‘Finfluencers’ in simple terms is a person who


provides information on financial topics usually on mutual funds, stock
market etc. There is a rising concern because of the rapid growth of the
demand of these influencers and there are major security issues which need
to be addressed. Security Exchange Board of India (SEBI) issued several
guidelines for unregulated and unlicensed advisors to protect consumer
rights.

Current challenges are that mainstream media is running by these influencers,


businessmen running stock tips, T.V. anchors and influencers writing about
companies and digital platforms. There is a lack of transparency and poor
implementation to check the misuse of power.

India should adopt strict policies like other major economies where there are
strict rules and code of conduct. Countries such as Australia, European
Securities China have strict provision of license, breach, penalty etc.

Guiding Principles for Code of Conduct- Finfluencers should be clearly


defined; They should cover all medium and form of content; Consumer
protection should be addressed; Transparency and Data-led Communication
should be implemented; Influencers should be willing to adopt their own
advices on their investment.

Effectiveness- Influencers should have Technological Framework, market


surveillance capabilities, moral values. They should be registered and give
authenticated data to support their views. There is a need of legal authority
that will be responsible of charging penalty in case of breach. Consumer
friendly complaint forums, Supervising Mechanism should also be there to
check the activities of influencers.
Research Gap- This literature review lacks quantitative analysis of the topic as there
is no data given regarding the uprising of Finfluencers. It also lacks population gap
because specific age group, gender, race is not well represented.

Published By – Observer Research Foundation

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