SEBI Chief Warns Investors Against Finfluencers, Unrealistic Return Promises

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on October 5 warned investors against following finfluencers, anonymous investment tips and exaggerated promises of returns as household participation in capital markets grows. Speaking at the launch of SEBI's Project Jagrook in Chandigarh, Pandey advised investors to use only regulated products, channels and entities, and to invest only in financial instruments they understand.

A SEBI survey revealed significant gaps in investor knowledge and market participation. While 63% of households were aware of at least one securities-market product, only 9.5% actually participated in the market. Just 36% of investors possessed high or moderate knowledge. The survey also showed an urban-rural divide, with 15% market participation in urban areas compared to 6% in rural India.

Project Jagrook aims to coordinate investor education across SEBI, stock exchanges, depositories and other institutions. Pandey urged investors to diversify portfolios, start investing early and avoid decisions based solely on peer behaviour or unverified recommendations.