The Securities and Exchange Board of India (SEBI) on May 25 issued an order against the company Mansun Consulting and its promoters, PR Sundar and Mangayarkarasi Sundar, for providing investment advice without obtaining the necessary registrations from SEBI. PR Sundar is a trader and financial influencer (finfluencer) with over a million followers on YouTube and a large following on Twitter and Telegram as well. As part of the settlement order, Mansun Consulting, PR Sundar, and Mangayarkarasi Sundar will pay a penalty of over ₹6 crores and are barred from trading in the stock markets for a year. Why does this matter: The number of finfluencers has mushroomed in the last few years, and in some cases, these influencers peddle bad financial advice due to a lack of expertise, harming those at the receiving end. SEBI's order is a strong signal to financial influencers that they don't have a free pass and will be held liable for their actions. Earlier in March, the stock market regulator also cracked down on a YouTube pump-and-dump scheme where financial influencers manipulated share prices to their advantage. What services did Sundar offer that was deemed illegal? SEBI explained that Sundar had a tab titled "Advisory" on his website www.prsundar.blogspot.com, that had the description "Advisory services - Daily calls on Telegram: We will be giving daily calls on what positions to take, adjustments, etc. on the Telegram messaging app." Upon examining the recommendations Sundar disseminated to his followers, SEBI concluded that they fall under the definition…
- Parliament Standing Committee Calls For A Monitoring Group To Check Technological Readiness For Digital Education Projects September 29, 2023
- IT Ministry May Shelve Self-Regulatory Bodies for Online Real Money Gaming Until Inter-Ministerial Views “Harmonised”: Report September 29, 2023
- Net neutrality rules set to be reintroduced in the US September 28, 2023
- Fact Check Amendment Makes Platforms Judge Whether to Take Content Down: Lawyers Argue Before Bombay HC September 28, 2023
- Epic Games appeals Apple App Store verdict at US Supreme Court September 28, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...
Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...
RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.
Straw man fallacy: IT Ministers’ defence of government exemptions in data protection law misses the point
Both the IT Minister and the IT Minister of State have chosen to avoid the actual concerns raised, and have instead defended against lesser...
The Central Board of Film Certification found power outside the Cinematograph Act and came to be known as the Censor Board. Are OTT self-regulating...
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...