NSE recently released a circular on brokers’ use of influencers in promoting their products and services.
NSE in this circular says that any content shared by any third party (like influencers) which promotes the broker’s business-like products, services, brokerage plans, etc. should be treated as advertisement and will require prior approval of the Exchange.
Additionally, third parties doing any kind of brand promotion or influencing the investment decisions of any investors will also need an approval from the exchange and will be treated as an advertisement.
It also says that any content used by influencers should strictly follow the codes of advertisement prescribed by Exchange and SEBI and will need approval from the regulators before its release.
In a way, this is good and will clamp down influencers, especially those providing tips, leading investors to buy penny stocks, etc.
Considering there are quite a few brokers who use influencers on YouTube, Insta reels, and other social media platforms, what do you think about this and its effect on the industry?