The Securities and Exchange Board of India (SEBI) has on 8 December launched a new risk and return verification agency that aims to stop mis-selling of investing products and tighten supervision through digital audit trails and standardised reporting, according to a Reuters report.
The market regulator’s decision comes as it seeks more powers from the Centre to address problems posed by “finfluencers” (so-called financial influencers on social media). SEBI wants power to remove unauthorised financial advice from social media platforms such as WhatsApp and Telegram, and to access their call records for investigations into market violations, the report added.
- The PaRRVA platform will eventually provide investors with verified performance records of services offered to them, while allowing regulated intermediaries to present genuine track records.
- The regulator has stepped up action against unregistered social media financial influencers, telling brokers and mutual funds to cut ties with who offer unauthorised stock tips or trading advice.
(With inputs from Reuters)
