 "finfluencers")
After a statement by the chairperson of the Securities and Exchange Board of India (Sebi), Madhabi Puri Buch, that there is "something cooking" for finfluencers, they are now "renting out" research analyst (RA) licences for a fee, moneycontrol reported on Friday. They are charging a rent of 20 per cent of the fee they make by providing trading calls and stock tips.
Several finfluencers were quoted in the report as saying that their applications are being rejected as RA regulations are very strict in India.
Currently, in India, to become a registered RA, a person must hold a post-graduate degree or a professional qualification and market experience of five years. However, most finfluencers do not meet this criterion.
According to finfluencers, there is a lack of clarity regarding regulations in India. Moreover, most finfluencers seem to lack credibility with the regulator.
Also, several traders-trainers who provide tips through workshops are registered as training companies in India. So, they bypass the regulations that would have been applicable if they were registered as RAs.
"There is a company that tried to get a licence, but they are registered as a training-learning company with the Ministry of Corporate Affairs. So they can't give advisory under that. Therefore, they have to set up a whole different company now and then apply for an advisory licence," a finfluencer, who did not want to be named, told moneycontrol.
Also, the RA is not allowed to conduct a live trading session but several finfluencers do this, which will not be possible anymore.
