Finfluencing A Boon Or Bane: Critical Appraisal Of SEBI’s Consultation Paper In Labyrinth Of Unregistered Finfluencers

Shrely Sinha, Lovely Professional University Jalandhar, Punjab

Cap Sai Srinivas, Lovely Professional University Jalandhar, Punjab

ABSTRACT

The evolution of digital media and content generation and sharing platforms attributed to the factors of technological advancements and correspondingly the penetration of the Internet have significantly changed the trends in the fields of commerce and trade. The allure of money has led to a more tangible concept of financial investment. Notably, this shift has paved the way for the emergence of "Finfluencers" or Financial Influencers, who use online platforms to share insights on finance, investment strategies, and economic trends. These Intermediaries play a vital role in shaping perceptions and decisions within the financial sector. They usually through online platforms, connect professionals with the masses, simplifying complex financial terms and making market instruments more accessible. This paper explores the burgeoning trends of finfluencers, focusing on their unprecedented growth, particularly during the economic downturn, caused by the COVID-19 pandemic. It examines the finfluencers in pondering the new avenues for income generation, acknowledging both the positive and negative impacts in mitigating the act of finfluencing and analyzing the emerging jurisprudence in a regulatory overview.

In addition, the paper discusses the regulatory environment surrounding finfluencers, focusing on SEBI's role in maintaining market integrity and investor interests. It explores the widespread integration of the Internet of Things (IoT) in rural households, its transformative impact on disseminating financial content, bridging the gap between financial and traditional literacy. The authors also conduct a comprehensive analysis of the global and Indian financial literacy landscape, considering SEBI's rules and regulations, the Indian Penal Code, Consumer Protection Laws, and other pertinent legislations. The article critically evaluates revenue models of finfluencers in the online landscape, emphasizing the need for legal scrutiny and regulation to ensure ethical practices and protect the interests of the growing audience relying on financial advice through social media platforms.

Keywords: Finfluencers, Financial Intermediaries, Financial Investment, Economic Trends, SEBI (Securities And Exchange Board Of India), Internet of things (IoT), Financial literacy, Regulatory Environment.