Gen Z’s investing boom has a finfluencer problem

India’s Gen Z is turning to social media finfluencers for investment advice, often at the expense of traditional financial guidance. This trend has led to regulatory challenges, with many finfluencers operating without proper registration, resulting in misinformation and scams. Experts call for stricter regulations to safeguard young investors from financial FOMO and misleading content. “Followers who suffer losses after acting on misleading advice can sue under contract or tort law. The Consumer Protection Act may also apply where followers have paid for premium tips or courses,” Ahluwalia said. However, legal recovery remains extremely difficult. “Recovering market losses by suing finfluencers is incredibly difficult. SEBI penalises unregistered advisers through fines and bans, but that rarely translates into direct refunds for followers,” said Probir Roy Chowdhury, Partner at JSA Advocates & Solicitors. Read more