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On the occasion of World Investor Week happening between October 9 and October 15, SEBI has urged people not to fall prey to unsolicited investment advice.
In fact, SEBI has themed World Investor Week as “A smart investor does not act on unsolicited investment offers.”
This suggests that SEBI aims to protect investors from finfluencers who give free investment tips to people. Today, many social media influencers also known as finfluencers give unsolicited investment advice to people on YouTube and Instagram.
In her letter to investors, Madhabi Puri Buch, SEBI Chairman said that investors should focus on basic tenets of investment like systematic investment and power of compounding. She said, “It is important to understand that anyone offering assured returns or profits, free stock tips, unsolicited investment advice etc, is not only violating the law, but perpetrating fraud on them. Investors should keep fundamental principles such as portfolio diversification, systematic investment, power of compounding, etc. in mind while investing.”
Buch also advised investors should use strong passwords when they use technology to invest. She said, “With the increasing adoption of technology by the markets and the expanding reach of social media, investors should be careful to make use of strong passwords, not to share their personal or financial information online and verify the accuracy of the investment related information found in the digital world.”
Buch said, “A well-informed investor is the best protected investor. With this core belief, SEBI has been continuously working towards investor awareness and education to facilitate investor protection.”
