Ahmedabad has one of world's best schools; Curbing retail investment scams
T4's World’s Best School Prize for Innovation goes to Riverside School in Ahmedabad.
Hi there,
Firstly, Happy Diwali!
We had a busy week last week, with two events. Thanks to everyone that came to the Ramayana puppet show. Pictures to follow in next week’s newsletter.
T4’s World’s Best School Prize for Innovation recognises and celebrates schools that innovate by applying new ideas, tools, or practices that break from tradition in the context of a school to address a challenge which results in a more inclusive and equitable learning environment. This year, it went to the Riverside School in Ahmedabad.
Congratulations to CottonConnect for winning Partnership of the Year at the Reuters Responsible Business Awards 2023, along with Primark and RUDI (which is part of the female farmers union Self-Employed Women’s Association [SEWA]). They won for their coalition to deliver the Primark Sustainable Cotton Programme (PSCP), which set up in India in 2013 to address the challenges of more sustainable cotton sourcing, and is now operating in four countries with 252,800 farmers trained or training. The impact results have shown improvements in all key areas, equipping farmers with the knowledge and skills needed to grow cotton more sustainably, including reducing the use of chemical fertilisers, pesticides, and water. In India, the PSCP works particularly with female farmers to improve their ability to increase income.
An Al Jazeera and Reporters’ Collective investigation a few weeks ago alleged that Bank of Baroda staff and agents linked their mobile numbers with customers’ accounts to inflate registrations for the bank’s app, bob World (Bank of Baroda denied the allegations). India’s retail investors have very little protection from scams, but now SEBI is taking action, including against Bollywood actor Arshad Warsi, for misleading retail investors. Scroll down to read more.
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Member news
Pop artist Ketna Patel is continuing to host her latest BRITINDIA exhibition at the Headstone Manor and Museum in London (10 Oct 23 - 28 Jan 24). If you’re interested in free artist guided group tours and talks, please call Ketna on 07982 654310.
Anand Mistry and Project CHAKRA’s case study showing how simulations, role playing and gamification can develop students’ global citizenship and help grand challenges feel more surmountable was featured in Times Higher Education this month.
Policy Watch: SEBI's regulatory reforms to curb retail investment scams
As September 2023 approached, significant policy developments in India's retail investment landscape demanded our attention. YouTube channels promoting financial products have raised concerns about scams and conflicts of interest. The Securities and Exchange Board of India (SEBI) has taken decisive steps to bring in more protection for retail investors.
India's retail investment space, especially online, has become a hotspot for financial scams. Self-proclaimed “financial gurus” on YouTube have lured unsuspecting investors into potentially hazardous schemes (CERPA, 2023). This has raised concerns about conflicts of interest, with influencers promoting products without transparency, for personal gain.
Sucheta Dalal’s well-known YouTube channel has explored unregistered finfluencers and new lures for retail speculators many times.
To protect investors and enhance transparency, SEBI introduced comprehensive regulatory reforms for YouTube channels and influencers. These rules aim to establish stringent guidelines to mitigate conflicts of interest and provide reliable and unbiased information.
Bollywood actor Arshad Warsi (Munnabhai MBBS, Golmaal) was one of dozens banned from participating in the stock market after investigating allegations of price manipulation.
Key reforms:
Disclosure Requirements: YouTube influencers must provide full and transparent disclosures about their financial interests and affiliations with the products they endorse.
Code of Conduct: Influencers must adhere to a code of conduct emphasizing integrity, honesty, and ethical behavior. Violations could result in penalties and legal consequences.
Qualification Standards: SEBI is working on implementing qualification standards for influencers promoting financial products, ensuring advice from knowledgeable sources.
Accountability and Reporting: Influencers will be held accountable for the accuracy of their claims, with SEBI establishing a reporting mechanism for investor complaints.
The need for these reforms is highlighted by the alarming increase in retail investment scams in India. CERPA reported that 78% of retail investors in India have suffered financial losses due to fraudulent schemes promoted on YouTube channels (CERPA, 2023), eroding investor confidence. It complements other rules around curbing retail investors’ derivatives risk.
India is not alone in recognising the importance of regulating financial influencers and YouTube channels. The International Journal of Financial Regulation and Compliance (IJFRC) found that 32 countries have implemented similar rules to safeguard retail investors and maintain the integrity of financial markets (IJFRC, 2023).
SEBI's regulations represent a substantial step towards protecting the interests of retail investors in India, with the regulations coming into force fully in the coming weeks. By fostering transparency, accountability, and ethical conduct, these reforms will do more to shield retail investors.
Timisa Bajpai is an International Relations student at King’s College London and is interested in policy research on security and the SDGs. You can reach out to her at timsa@bridgeindia.org.uk.
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