Finance Minister Nirmala Sitaraman in a recent media panel interview, gave caution against the financial advice given by financial influencers online. On Sunday, April 23, at an event held at Bengaluru, she said that the government is in the process of initiating guidelines to prevent such social media provocation of misleading investors into investing in partially lucrative assets. SEBI has previously many mandated many registrations and other norms for social media influencers last year. They made sure that the rules are fixed to governing registered financial advisors.
She further spoke about Ponzi investment apps, which the users convinced with the false ideas of higher returns invest their hard-earned money.
According to her also people should not flock into something and before going into something, one should always make their due diligence. She further added, that people have to be careful, concerning investing in such deceptive apps because after all, it is their hard-earned money.
Though the proposals to regulate guidelines to prevent financial influencers on social media are yet to be finalized, she advised users should exercise caution not to lose their hard-earned money.
In answer of when would the government take the initial process of starting financial influencers regulation, she answered that the government at the present stage does not have any proposal but they want to caution people about the potential impact and how can they do away with the problem right then. She even uttered, “If there are 3-4 people giving us objective advice, there are 7 others out of 10 who’re probably driven by some other considerations.”
To sum up, it is always viable to make such crucial decisions before investing, which was as stated in the comments of the Financial Minister. An individual’s, should always review, analyze and recheck the status of the investing they are investing to escape any trouble in future.