Calls are mounting for a crackdown on financial influencers in India after the country's market regulator penalised a popular social media personality and trader.
There has been a boom in India in the popularity of financial influencers – or “finfluencers” – who offer advice on matters including investments and trading via social media platforms such as YouTube and Facebook.
But questions about the legitimacy of this practice have come into sharp focus as the Securities and Exchange Board of India last month fined one finfluencer, PR Sundar, to the tune of 60 million rupees and imposed a one-year trading ban on him for alleged breaches of investment advisory regulations.
This followed complaints that Mr Sundar – a former maths teacher who styled himself as a trading guru – and his company Mansun Consulting were collecting advisory fees without registering with the market regulator.
There is no specific set of regulations for financial influencers in India and this was the first case of its kind.
“India should create regulations,” says finfluencer Himani Chaudhary, a qualified research analyst with 589,000 followers on Instagram, who gained traction by making a series of videos on stock market basics for beginners.
The rise of finfluencers in India follows an increase in online stock market trading among retail investors, which started to surge in popularity during the Covid-19 pandemic. People stuck at home were looking for alternative ways to make money as stocks plunged due to initial uncertainty over the pandemic, creating buying opportunities, before rallying, experts say.
The total number of demat accounts – which are required for people to make stock market investments in India – reached 108 million in December 2022, up 34 per cent from a year earlier, according to analysis by Motilal Oswal Financial Services.
“The Covid lockdown coupled with huge marketing spends by brokers to acquire new customers drove an unprecedented number of first-timers to financial markets. And the first question these newbies had was: ‘how to...?’” says Saurabh Pandey, chief marketing officer at Kuvera.in, an online investment platform.
“YouTube and other social platforms thus became the default destination. This exploding demand for content led to the rise of the new 'finfluencers' in India.”
This comes amid growing internet usage in India and the rise of influencers in general in the country due to social media trends.
“Financial influencers have gained popularity in India due to increasing financial awareness, digital media platforms, trust and relatability, simplifying financial concepts, personal branding and building communities,” says VLA Ambala, a research analyst and co-founder of Stock Market Today, a Sebi-registered financial advisory platform.
Some of India's most popular finfluencers have millions of followers – delivering advice in Hindi, English and regional languages.
“They educate and simplify complex financial topics, making them accessible to a wider audience,” says Ms Ambala.
“Their relatability and personal experiences establish trust, while social media platforms allow them to reach and engage with millions.”
But “caution and independent research are necessary” when considering the advice offered by finfluencers, she warns.
Ms Ambala says many people do not have the necessary qualifications to perform such a role, and that “Sebi should take immediate action to shut down all unauthorised tip and services providers – whether it's free or paid”.
To charge for investment advice, they should have a licence from Sebi, she says.
Financial influencers also generate revenue through advertisements, partnerships with brands and by promoting trading platforms.
However, there are limited mechanisms to keep how these influencers operate in check, which has resulted in some unscrupulous practices, industry experts say.
“There have been numerous cases of influencers selectively sharing screenshots of successful trades and deleting unfavourable transactions, luring the average investor into trades with the promise of high returns,” says Mr Pandey.
“A massive social media following can and has been used to perpetrate pump-and-dump schemes” – in which a stock's price is manipulated by spreading false information.
Akshar Shah, founder and chief executive at investment technology platform Fixed, says that the financial relationships between finfluencers and brokers “should be subject to stringent regulations”, given this is how many finfluencers make money.
“Transparency and disclosure are crucial in maintaining trust, ensuring that conflicts of interest do not compromise the dissemination of unbiased information,” he says.
A few weeks ago, India's Finance Minister Nirmala Sitharaman warned of possible risks from some financial influencers and “Ponzi scheme” apps.
She said, however, that there were no plans to regulate financial influencers.
“If there are three or four people giving us very objective, good advice, there are seven others out of 10 who are probably driven by some other considerations,” Ms Sitharaman said at the time.
Meanwhile, some financial influencers are now more cautious, after Sebi’s action against Mr Sundar.
Niyati Mavinkurve, a digital content creator and co-founder of YouTube channel Let’s Make You Rich, says recent developments send a strong message that “there's a regulator watching”.
“I mainly simplify and explain concepts when it comes to finance,” she says. “There has been no impact in the way I operate.
“Even before Sebi started cracking down on influencers, I'd been preparing to get an investment adviser licence. I've never promoted anything on the finance channel – it has been self-funded.”
Financial influencer Ms Chaudhary says when she started creating financial content, many people contacted her to manage their portfolios, “which I cannot do legally nor do I wish to”.
Following Mr Sundar’s case, “the only change I plan to make would be being more transparent with my community”, she says.
Financial influencers are waiting to see what will happen next when it comes to regulation.
Shavir Bansal, a content creator, finance expert and founder of BeKifaayati, which offers personal finance educational content and has more than one million subscribers on YouTube, says that on the one hand, “new regulations, if implemented, would be beneficial in the long term”.
“They would create a barrier to entry, allowing those who operate within the legal framework to thrive while forcing fake ones out of the industry,” he says, warning there could also be negative consequences if such regulations are not implemented carefully.
“I recognise that regulating financial influencers is a complex and challenging task.
“Sebi might find it hard to establish clear guidelines distinguishing financial advice from financial education. India's financial literacy levels are relatively low.
“It's essential for the regulator to devise a suitable mechanism that protects genuine professionals from any adverse impact.”
A lack of specific regulation for finfluencers means that consumers should do their own research, says Anil Joshi, managing partner at Unicorn India Ventures, an early stage venture capital fund.
“Sharing content or posting views on any particular investable stock is non-offensive as long as it is a well-researched stock and with good analytical views,” he says.
“Considering the growing influence of the financial influencers, the regulators may come up with the guidelines, and once that happens, then it will be illegal to give advice without registration.”
He points out that guidelines – if introduced – are unlikely to be foolproof.
“It would be difficult to manage individuals who share their views,” says Mr Joshi.
As finfluencers have become too big to ignore, it will be a case of striking the right balance, experts say.
“Finfluencers, with their ability to disseminate financial information and insights, have undoubtedly played a significant role in shaping the investment landscape,” says Mr Shah.
“As we embrace the power of finfluencers, we must find the delicate balance between their influence and the protection of individual investors.”
Top finfluencers in India
- Rachana Phadke Ranade Instagram @ca_rachanaranade 939,000 followers; YouTube @CARachanaRanade 4.4 million subscribers. She is qualified as a chartered accountant and has become a huge hit as a financial influencer in India through her videos which explain how the stock markets work in simple terms
- Sharan Hegde Instagram @financewithsharan 2.2 million followers; YouTube @financewithsharan 1.8 million subscribers. He shares personal finance advice on topics including tax and insurance and is popular among teenagers and young adults in India
- Raj Shamani Instagram @rajshamani 1.5 million followers; YouTube @rajshamani 1.18 million subscribers. He is an entrepreneur, investor and social media influencer. Raj has also written a bestselling book, Build Don't Talk: Things You Wish You Were Taught in School
- Neha Nagar Instagram @iamnehanagar 1.5 million; YouTube @nehanagar 377,000 subscribers. Her aim is to spread financial literacy and she started creating finance content in 2020. She covers topics including stocks, mutual funds and real estate
- Akshat Shrivastava Instagram @akshat.world 144,000 followers; YouTube @AkshatZayn 1.67 million. He is a financial influencer who focuses on sharing investment information, largely related to stocks.
Name: Brendalle Belaza
From: Crossing Rubber, Philippines
Arrived in the UAE: 2007
Favourite place in Abu Dhabi: NYUAD campus
Favourite photography style: Street photography
Favourite book: Harry Potter
What is Folia?
Prince Khaled bin Alwaleed bin Talal's new plant-based menu will launch at Four Seasons hotels in Dubai this November. A desire to cater to people looking for clean, healthy meals beyond green salad is what inspired Prince Khaled and American celebrity chef Matthew Kenney to create Folia. The word means "from the leaves" in Latin, and the exclusive menu offers fine plant-based cuisine across Four Seasons properties in Los Angeles, Bahrain and, soon, Dubai.
Kenney specialises in vegan cuisine and is the founder of Plant Food Wine and 20 other restaurants worldwide. "I’ve always appreciated Matthew’s work," says the Saudi royal. "He has a singular culinary talent and his approach to plant-based dining is prescient and unrivalled. I was a fan of his long before we established our professional relationship."
Folia first launched at The Four Seasons Hotel Los Angeles at Beverly Hills in July 2018. It is available at the poolside Cabana Restaurant and for in-room dining across the property, as well as in its private event space. The food is vibrant and colourful, full of fresh dishes such as the hearts of palm ceviche with California fruit, vegetables and edible flowers; green hearb tacos filled with roasted squash and king oyster barbacoa; and a savoury coconut cream pie with macadamia crust.
In March 2019, the Folia menu reached Gulf shores, as it was introduced at the Four Seasons Hotel Bahrain Bay, where it is served at the Bay View Lounge. Next, on Tuesday, November 1 – also known as World Vegan Day – it will come to the UAE, to the Four Seasons Resort Dubai at Jumeirah Beach and the Four Seasons DIFC, both properties Prince Khaled has spent "considerable time at and love".
There are also plans to take Folia to several more locations throughout the Middle East and Europe.
While health-conscious diners will be attracted to the concept, Prince Khaled is careful to stress Folia is "not meant for a specific subset of customers. It is meant for everyone who wants a culinary experience without the negative impact that eating out so often comes with."
The specs: 2017 Dodge Viper SRT
Price, base / as tested Dh460,000
Engine 8.4L V10
Transmission Six-speed manual
Power 645hp @ 6,200rpm
Torque 813Nm @ 5,000rpm
Fuel economy, combined 16.8L / 100km
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%204.4-litre%20twin-turbo%20V8%20with%2048V%20mild%20hybrid%20system%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E544hp%20at%205%2C500rpm%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E750Nm%20at%201%2C800-5%2C000rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E8-speed%20auto%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh700%2C000%20(estimate)%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Elate%20November%3C%2Fp%3E%0A
Kibsons%20Cares
%3Cp%3E%3Cstrong%3ERecycling%3Cbr%3E%3C%2Fstrong%3EAny%20time%20you%20receive%20a%20Kibsons%20order%2C%20you%20can%20return%20your%20cardboard%20box%20to%20the%20drivers.%20They%E2%80%99ll%20be%20happy%20to%20take%20it%20off%20your%20hands%20and%20ensure%20it%20gets%20reused%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EKind%20to%20health%20and%20planet%3C%2Fstrong%3E%3Cbr%3ESolar%20%E2%80%93%2025-50%25%20of%20electricity%20saved%3Cbr%3EWater%20%E2%80%93%2075%25%20of%20water%20reused%3Cbr%3EBiofuel%20%E2%80%93%20Kibsons%20fleet%20to%20get%2020%25%20more%20mileage%20per%20litre%20with%20biofuel%20additives%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESustainable%20grocery%20shopping%3C%2Fstrong%3E%3Cbr%3ENo%20antibiotics%3Cbr%3ENo%20added%20hormones%3Cbr%3ENo%20GMO%3Cbr%3ENo%20preservatives%3Cbr%3EMSG%20free%3Cbr%3E100%25%20natural%3C%2Fp%3E%0A
box
COMPANY PROFILE
Company name: Letstango.com
Started: June 2013
Founder: Alex Tchablakian
Based: Dubai
Industry: e-commerce
Initial investment: Dh10 million
Investors: Self-funded
Total customers: 300,000 unique customers every month
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
It's up to you to go green
Nils El Accad, chief executive and owner of Organic Foods and Café, says going green is about “lifestyle and attitude” rather than a “money change”; people need to plan ahead to fill water bottles in advance and take their own bags to the supermarket, he says.
“People always want someone else to do the work; it doesn’t work like that,” he adds. “The first step: you have to consciously make that decision and change.”
When he gets a takeaway, says Mr El Accad, he takes his own glass jars instead of accepting disposable aluminium containers, paper napkins and plastic tubs, cutlery and bags from restaurants.
He also plants his own crops and herbs at home and at the Sheikh Zayed store, from basil and rosemary to beans, squashes and papayas. “If you’re going to water anything, better it be tomatoes and cucumbers, something edible, than grass,” he says.
“All this throwaway plastic - cups, bottles, forks - has to go first,” says Mr El Accad, who has banned all disposable straws, whether plastic or even paper, from the café chain.
One of the latest changes he has implemented at his stores is to offer refills of liquid laundry detergent, to save plastic. The two brands Organic Foods stocks, Organic Larder and Sonnett, are both “triple-certified - you could eat the product”.
The Organic Larder detergent will soon be delivered in 200-litre metal oil drums before being decanted into 20-litre containers in-store.
Customers can refill their bottles at least 30 times before they start to degrade, he says. Organic Larder costs Dh35.75 for one litre and Dh62 for 2.75 litres and refills will cost 15 to 20 per cent less, Mr El Accad says.
But while there are savings to be had, going green tends to come with upfront costs and extra work and planning. Are we ready to refill bottles rather than throw them away? “You have to change,” says Mr El Accad. “I can only make it available.”
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%20Twin-turbocharged%204-litre%20V8%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E542bhp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E770Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3EEight-speed%20automatic%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh1%2C450%2C000%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
THE LIGHT
Director: Tom Tykwer
Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger
Rating: 3/5
5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
AT%20A%20GLANCE
%3Cp%3E%3Cstrong%3EWindfall%3C%2Fstrong%3E%0D%3Cbr%3EAn%20%E2%80%9Cenergy%20profits%20levy%E2%80%9D%20to%20raise%20around%20%C2%A35bn%20in%20a%20year.%20The%20temporary%20one-off%20tax%20will%20hit%20oil%20and%20gas%20firms%20by%2025%20per%20cent%20on%20extraordinary%20profits.%20An%2080%20per%20cent%20investment%20allowance%20should%20calm%20Conservative%20nerves%20that%20the%20move%20will%20dent%20North%20Sea%20firms%E2%80%99%20investment%20to%20save%20them%2091p%20for%20every%20%C2%A31%20they%20spend.%0D%3Cbr%3E%3Cstrong%3EA%20universal%20grant%3C%2Fstrong%3E%0D%3Cbr%3EEnergy%20bills%20discount%2C%20which%20was%20effectively%20a%20%C2%A3200%20loan%2C%20has%20doubled%20to%20a%20%C2%A3400%20discount%20on%20bills%20for%20all%20households%20from%20October%20that%20will%20not%20need%20to%20be%20paid%20back.%0D%3Cbr%3E%3Cstrong%3ETargeted%20measures%3C%2Fstrong%3E%0D%3Cbr%3EMore%20than%20eight%20million%20of%20the%20lowest%20income%20households%20will%20receive%20a%20%C2%A3650%20one-off%20payment.%20It%20will%20apply%20to%20households%20on%20Universal%20Credit%2C%20Tax%20Credits%2C%20Pension%20Credit%20and%20legacy%20benefits.%0D%3Cbr%3ESeparate%20one-off%20payments%20of%20%C2%A3300%20will%20go%20to%20pensioners%20and%20%C2%A3150%20for%20those%20receiving%20disability%20benefits.%3C%2Fp%3E%0A
Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
