Don't trust finfluencers blindly, warns SEBI chief
What's the story
Tuhin Kanta Pandey, the chairman of the Securities and Exchange Board of India (SEBI), has warned investors against the risks posed by 'finfluencers' and exaggerated return claims. The warning was issued during the launch of SEBI's 'Project Jagrook' at Panjab University in Chandigarh. "Beware of investment frauds, use regulated products, channels and entities," Pandey said. He stressed that investors should not rely on anonymous tips or influencers for their investment decisions.
Investment advice
Invest in products you understand, not trends: Pandey
Pandey also advised investors to invest in products they understand, start early, stay invested for the long term, and diversify their investments.
He emphasized that investment decisions should be based on an individual's understanding rather than following trends or advice from others.
"Do not invest because someone told you to, do not invest because everyone else is investing. Invest because you understand," he said.
Market participation
SEBI survey shows gap between awareness and participation
Pandey's warning comes as India's securities markets have grown rapidly over the last decade, with more households entering equities, mutual funds, and other market-linked products.
However, a SEBI survey found a major gap between awareness of these products and actual participation.
The survey showed that while about 63% of households were aware of at least one securities-market product, only 9.5% were participating in it.
Participation disparity
Urban-rural divide in market participation
The SEBI survey also revealed a stark urban-rural divide in market participation.
While around 15% of urban households participated in the securities market, only 6% did so from rural areas.
The survey also found that investors preferred information about financial products in Hindi and regional languages rather than English, highlighting low awareness of SEBI's investor-centric initiatives.
Initiative launch
Project Jagrook launched to educate investors
In response to these findings, SEBI has announced Project Jagrook.
The initiative brings together SEBI, stock exchanges, depositories, the National Institute of Securities Markets (NISM), and other partner organizations for a coordinated investor-education effort.
The campaign will simplify securities-market concepts by using television, print media, radio, cinema, digital platforms, social media, OTT services, as well as WhatsApp in English, Hindi, and 11 regional languages.
Financial literacy
SEBI to take financial literacy programs to remote areas
SEBI is also collaborating with the Ministry of Panchayati Raj to take financial literacy programs to remote areas.
The regulator is also planning initiatives for colleges and universities.
Pandey said India's capital markets have become deeper and more accessible over the last decade, with demat accounts rising to 23.8 crore and unique investors reaching around 15 crore.