SEBI is taking steps to curb the menace of fake finfluencers spreading misinformation. Here's what they're doing : - *Restricting partnerships*: SEBI has proposed rules to disrupt the revenue model of unregistered finfluencers by restricting partnerships between registered entities and unregistered individuals. - *Registration requirements*: SEBI wants finfluencers to register with them, display their registration numbers, and adhere to a code of conduct. - *Centralized fee collection*: SEBI has proposed a centralized fee collection system to prevent hidden payments to finfluencers. - *Stricter disclosure requirements*: SEBI is imposing stricter disclosure requirements to ensure transparency and accountability. Despite these efforts, concerns remain : - *Enforcement challenges*: SEBI's record of stopping bad behavior with penalties has been spotty, raising questions about the effectiveness of these measures. - *Shady intermediaries*: Some registered intermediaries might still find ways to circumvent the rules, potentially undermining SEBI's efforts. - *Limited registration*: Currently, only about 2% of finfluencers are SEBI-registered, leaving many investors vulnerable to misinformation. To protect themselves, investors should : - *Verify SEBI registration*: Ensure the finfluencer is registered with SEBI before taking investment advice. - *Check for disclosures*: Look for clear disclosures about sponsorships, affiliate deals, or paid promotions. - *Be cautious of get-rich-quick schemes*: Be wary of promises of high returns with minimal risk, and prioritize long-term planning and informed decision-making.