In a recent statement, the Reserve Bank of India (RBI) Governor, Shaktikanta Das, has confirmed that the RBI has no intention to regulate social media influencers. Das emphasized that the Securities and Exchange Board of India (SEBI) is already overseeing this area, making any additional regulation redundant.
The RBI acknowledges the concerns raised about the role of social media influencers in the financial markets and has been in close communication with SEBI and other regulators regarding this matter.
Maintaining a delicate balance between safeguarding investors and upholding freedom of speech on social media is a key consideration for the RBI. The central bank will continue to diligently monitor the situation and will take appropriate action if deemed necessary.
Reasons behind the RBI’s Decision
- SEBI’s Existing Regulation: SEBI has already taken proactive measures in regulating social media influencers. In 2022, the regulatory body issued a circular mandating influencers to disclose their affiliations, compensation, and other relevant information when making investment-related statements.
- Preserving Free Speech: The RBI places value on preserving free speech on social media platforms. While protecting investors from misleading or fraudulent investment advice is crucial, stifling free speech is not the objective.
- Ongoing Monitoring and Action: The RBI remains vigilant and proactive in monitoring the situation. If necessary, appropriate action will be taken to address any emerging challenges or risks associated with social media influencers.
It is important to understand that the RBI’s decision not to regulate social media influencers does not grant them unrestricted freedom to disseminate false or misleading investment information. The SEBI’s circular on social media influencers remains in effect, and individuals who make false or misleading investment statements are still subject to legal liability under the SEBI Act.
