Nithin Kamath On Finfluencers: SEBI Can't Save Investors From Themselves

Nithin Kamath, founder of Zerodha, has shared his thoughts on the role of the Securities and Exchange Board of India (SEBI) and brokers in removing ignorance from the market while stressing investor awareness.

What Happened: Kamath took to X, formerly Twitter, on Thursday to comment on SEBI’s consultation paper on regulating influencers. He quoted financial law advisor Sandeep Parekh who said in a recent YouTube video in conversation with Kamath: “SEBI's job is to remove ignorance from the markets and not stupidity.”

He further highlighted the responsibility of brokers in educating users about trading and investing. he highlighted that Zerodha was doing its part by launching a verified profit and loss statement and initiatives like ZerodhaVarsity.

See Also: IT Major’s Shares Gain On Cloud Deal With Siemens, Analyst Upgrade

However, Kamath underscored that the onus of being financially aware and skeptical of get-rich-quick schemes also lies with the investors themselves.

Why It Matters: The discussion around SEBI’s consultation paper on influencer regulation has been a hot topic in the Indian financial market.

Finfluencers, who produce content on social media about finance, have come under the scanner for alleged “misselling” of financial products as their vested interests or financial incentives in these areas remain opaque and could cause monetary harm to those who follow their recommendations blindly.

A recent Securities and Exchange Board of India (SEBI) consultation paper proposes to limit such activities by disallowing SEBI-registered entities from associating with such unregistered advisors or analysts.

Read Next: Shah Rukh Khan Effect Pvr Inox Shares Gain On Hopes Of Jawans Bumper Opening

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Comments
Loading...
Posted In: EquitiesGovernmentRegulationsOpinionMarketsNithin KamathSandeep ParekhZerodha

Loading...