Navigating the Impact of Finfluencers: Regulatory Hurdles and Implications for Corporate Governance

Ever noticed cheat codes on making millions overnight or ever felt a sudden rush to embrace the world of entrepreneurship after binge-watching Shark Tank? These intriguing scenarios serve as entry points into the captivating realm of financial influencers, commonly known as "finfluencers." Leveraging digital platforms, these individuals disseminate financial advices and investment strategies, wielding considerable sway in the digital age. Through notable cases involving individuals like Mr. P R Sundar and his Mansun Consultancy Private Limited alongside other cases who have exemplified the ramifications of misleading financial advice within the finfluencer sphere, the paper delves into the rise of the Securities and Exchange Board of India’s (SEBI) consultation paper outlining guidelines to govern these activities. This paper scrutinizes, before these guidelines are approved and set into motion, critical loopholes that necessitate addressing. These gaps in regulation pose significant challenges to effective enforcement and risk mitigation in the rapidly evolving realm of digital financial advice. Furthermore, the implications of these regulatory developments extend beyond mere compliance. They intersect with broader considerations of corporate governance, as they fundamentally influence market integrity, investor protection, and transparency. As such, the efficacy of these guidelines not only impacts the activities of individual finfluencers but also shapes the broader corporate governance landscape within the financial industry. The paper thus undertakes and aims for an analysis of the multifaceted implications arising from the regulation of finfluencers and its interface with corporate governance frameworks.