Responding to concerns raised over the government endorsing certain individuals, such as investment advisors, as experts on the internet, Minister of State for Electronics & IT, Rajeev Chandrasekhar, clarified that the government encourages digital platforms to create awareness but does not endorse individuals. He emphasized the need for caution when using government logos in such campaigns by private platforms.
Chandrasekhar’s statement came in reference to a public interest campaign by YouTube, which featured a popular social media personality offering stock market courses. The campaign, displaying logos of the IT ministry and India’s G20 presidency, aimed to educate users about distinguishing between genuine and fake experts on the internet.
The ad raised questions about YouTube and the Ministry of Electronics & IT (MeitY) endorsing these so-called “trusted” experts. This concern arises as securities regulator Securities and Exchange Board of India (SEBI) has recently flagged unregistered social media influencers for providing financial and investment advice to their followers.
SEBI took action against PR Sundar, a financial influencer with over a million YouTube subscribers, barring him from the securities markets for a year. Sundar allegedly offered advisory services without registering with the regulator and was also ordered to disgorge over Rs 6 crore in fees earned.
SEBI Chairperson Madhabi Puri Buch acknowledged the growing number of unregistered investment advisors and hinted at forthcoming regulations to address the issue. However, no specific details were provided during an event hosted by the Association of Mutual Funds in India (AMFI).
Nithin Kamath, co-founder of Zerodha and a member of three SEBI advisory committees, recognized the contributions of investment advisors like Sundar but cautioned about the problem of setting unrealistic market expectations. He stated that such incorrect expectations lead to disappointment among investors.
The government’s stance, as expressed by Minister Chandrasekhar, highlights the need for vigilance and responsible use of government logos in campaigns involving private platforms. The actions taken by SEBI underscore the importance of regulating and monitoring financial advice provided on social media to protect investors from potential risks and misleading information.
