Friday, May 9 2025 | Time 11:59 Hrs(IST)
Business EconomyPosted at: Mar 24 2025 2:15PM


Only two pc of financial influencers registered with SEBI

Hyderabad, Mar 24 (UNI): Only 2 per cent of the financial influencers are registered with SEBI in the country , according to a report titled ‘Clicks and Credibility: Understanding Finfluencers’ Role in Investment Decisions’ release by CFA Institute, the global association of investment professionals on Monday.
The Institute, unveiled its much-anticipated India Finfluencer Report titled ‘Clicks and Credibility: Understanding Finfluencers’ Role in Investment Decisions’, offering a comprehensive analysis of the evolving role of financial influencers, or “finfluencers,” in shaping investment decisions across India’s retail investor landscape.
The study, based on a survey of over 1,600 investors and an in-depth analysis of 51 prominent financial influencers, reveals both the potential and the pitfalls of this growing phenomenon.
Over the last five years, India has seen an explosive growth in the number of retail investors in equity markets. While this is an encouraging datapoint for popularity of equities, the findings of the capital markets regulator, SEBI, also indicate that many of these investors are more speculators than investors, making significant losses, the report revealed.
While there have been sincere attempts by SEBI to curtail irresponsible investing behavior such as imposing heavy penalties on finfluencers illegally benefitting at the expense of uninformed retail investors, there is still a long way to go in regularising the finfluencer landscape in India, it stated.
One critical part of this process is to understand the investing behavior of investors and review of content produced by finfluencers.
In this direction, the findings of the report shed light on the significant sway finfluencers hold over investors, with 82 percent of followers reporting that they had acted on investment advice provided by influencers.
Among these, 72 percent saw financial gains. However, the report also highlights the risks inherent.
With 14 percent of older investors, those aged 40 and above, admitting to being misled or falling victim to fraudulent advice, underscoring the need for greater vigilance and regulatory oversight, the report stated.
Arati Porwal, Country Head, CFA Institute - India, commented: "India’s financial influencer ecosystem holds tremendous promise for awareness and in making financial knowledge more accessible and relatable to a broader audience. However, the report’s insights underscore the importance of responsible practices and informed decision-making."
Investors must remain vigilant, seek investment guidance from SEBI-registered advisors, and evaluate the credentials of the influencers they follow, he cautioned.
At CFA Institute, we are committed to encouraging greater transparency and collaboration between regulators, platforms, and influencers to build a trustworthy financial ecosystem, he added.
The report delves into various dimensions of India’s retail investment behaviour.
It revealed that younger investors between 21 and 25 often invest irregularly, waiting to accumulate savings, while older investors show more consistent monthly investment patterns.
Trust and ease of use are dominant factors influencing platform selection, with younger investors favoring low-brokerage platforms and older demographics relying on full-service brokerages and personalised guidance, it said.
While influencers play a pivotal role in demystifying finance for their audiences, the report highlighted a troubling lack of disclosure practices, with 63 percent of influencers failing to adequately disclose sponsorships or financial affiliations.
CFA Institute also highlighted the importance of addressing the gaps in regulation and awareness.
The report calls for stronger certification standards, urging the government to mandate SEBI registration for influencers who offer financial advice and stricter review practices.
In addition, CFA Institute recommends enhanced transparency practices from social media platforms, including clear labeling of sponsored content and the development of verification mechanisms for credible financial influencers. These measures, combined with investor education campaigns, will help protect retail investors while cultivating a responsible and thriving financial advice ecosystem.
As India’s investment landscape evolves, this report offers a timely and detailed roadmap for navigating the opportunities and challenges posed by financial influencers.
With a focus on education, transparency, and collaboration, CFA Institute aims to empower investors and drive meaningful reforms that uphold the integrity of financial advice in India.
UNI KNR KK
Please log in to get detailed story.
Tags: #Only two pc of financial influencers registered with SEBI
More News
Sensex crashes over 1300 pts

Sensex crashes over 1300 pts

09 May 2025 | 9:59 AM

Mumbai, May 9 (UNI) A bloodbath was seen in equity market on Friday, as BSE Sensex crashed 1366 pts to open at 78,968.34 escalating India -Pakistan tension.

see more..

Rupee opens at 85 66, declines 6 paise against USD

09 May 2025 | 9:49 AM

UNI NV GNK.

see more..

Sensex opens at 78,968 34, down 1366 pts and Nifty at 23,935 75, falls 338 pts

09 May 2025 | 9:28 AM

UNI NV GNK.

see more..

L&T clocks Rs 15,037 cr PAT in FY25

08 May 2025 | 8:32 PM

Mumbai, May 8 (UNI) Engineering major Larsen & Toubro (L&T) on Thursday reported a consolidated Profit After Tax (PAT) of Rs 15,037 crore for the financial year ended March 31, 2025, registering a 15 per cent year-on-year (y-o-y) growth, buoyed by strong project execution and improved operational momentum. Consolidated revenues for the year stood at Rs 2,55,734 crore, up 16 per cent y-o-y.

see more..
Avaana Capital leads 1 2 million dollars seed round in High Time Foods

Avaana Capital leads 1 2 million dollars seed round in High Time Foods

08 May 2025 | 7:53 PM

Bengaluru, May 8 (UNI) Avaana Capital, a venture capital fund backing deep-tech and frontier innovation, has led a USD 1.2 million seed round in High Time Foods, a food-tech startup offering cost-effective, shelf-stable plant-based protein solutions. Existing investors also participated in the round.

see more..