India’s ‘finfluencers’ rode the bull, but the bear’s now on their back

Earlier this month, Vauld, a crypto lending startup, suspended operations—withdrawals, trading, and deposits. It blamed “financial challenges” after a run on withdrawals amid the crypto selloff. What that says about digital currencies is a story for another day. That news, however, did spark another debate, perfectly encapsulated by this tweet. These four are among the so-called influencers, or financial influencers, who have sprung up over the past few years in the stock market’s bull run. They dole out knowledge and advice on everything finance from buying stocks to buying onions. They have Rockstar status on YouTube, with millions of followers. And everything was hunky dory until, well… it wasn’t. The replies to the tweet highlight the public discourse. One points out that these influencers run paid promotions in some cases, but issue only blink-and-you’ll-miss-it disclosures, if they do so at all. Another defends them, arguing, “Jaisi Praja, Waisa Raja.” (The king is like their subjects). “Problem is YouTube learners interested in fintertainment and short term frills.” There are some blanket allegations: “I am sure all of them would have been tipped off before the public announcement!” And, “Now I feel this was pre-planned by the Vauld CEO.” And some blanket defense's, “Caveat emptor.” It’s only low down in the replies that someone asks the markets regulator, tagging them for good measure, ”Did you know @SEBI_India this keeps happening right under our noses?” That’s the million-dollar question: how can these influencers dole out investment advice if they are not licensed financial analysts or advisors? And where the public discourse ends is where Jaspreet’s and Anand’s story begins. A story about how finfluencers filled a regulatory vacuum, the industry’s stance on regulating them (some of the defense offered by finfluencers are absolute gems), if we can even begin to regulate them and a peek into what other countries are doing.