Market regulator SEBI approved norms related to the regulation of financial influencers who provide information related to financial matters on Internet media on Thursday. This step has been taken amid growing concern about the potential risks associated with non-regulated financial influencers. Such influencers, who usually work on a commission-based model, can also give biased or misleading advice to people.
These Big Decisions Were Taken
To address these risks, the SEBI Board of Directors meeting approved a proposal for regulating influencers. The market regulator also introduced a fixed-price process for delisting frequently bought and sold shares.
SEBI said in a statement that the board of directors also introduced a framework for delisting investment and holding companies (IHCs). The regulator also approved the proposal to remove financial penalties on managing directors (MDs) and chief technology officers (CTOs) of stock exchanges and other market infrastructure institutions (MIIs) due to technical glitches.
Recommendation To Combine Pre-Issue Advertisement and Price Band Advertisement
At the same time, the market regulator proposed providing additional time for disclosure of litigation or disputes related to claims against listed firms and allowing companies to hold virtual or hybrid shareholder meetings permanently.
Sebi has also suggested providing additional time to disclose board meeting results, which end after trading hours. Additionally, it has been recommended that pre-issue and price band advertisements be combined as a single advertisement.
