Outrage Erupts as Finfluencer Abhishek Kar Confesses Breaching SEBI Regulations

Abhishek Kar, a leading finfluencer with over 1.5 million social media followers, is under scrutiny for allegedly promoting his trading courses under the guise of offering investment advice. In a widely circulated call recording, Kar can be heard using coded language (“B” for buy and “S” for sell) to indicate trading recommendations. This revelation has raised concerns about his compliance with Securities and Exchange Board of India (SEBI) regulations. Finwealth reached out to Kar for comment, but he declined to respond.

Kar, known for speaking at prestigious institutions like the Indian Institute of Technology (IIT) and the Institute of Chartered Accountants of India (ICAI), has faced growing pressure from online campaigns demanding accountability from trader-trainers like him. These campaigns have urged trader-trainers to provide verified profit-and-loss statements as evidence of their claims. However, Kar’s disclosure sheds light on the illicit practice of unregistered individuals selling investment advice while operating within the burgeoning “training” industry.

Kar admitted to initially sharing only charts in his Telegram group but later transitioned to conducting “observational trades” that subscribers could replicate. While trader-trainers argue that these trades are for educational purposes, Kar acknowledged that subscribers often followed them as investment recommendations. He also revealed tactics to boost his Telegram channel’s subscribers, including highlighting profitable trades and promoting premium groups with paid access to stock advice and trading calls.

In the conversation, Kar mentioned partnering with Rigi, a content creator platform, to combine training and mentoring programs, which gained significant traction. These mentoring programs go beyond basic stock market concepts and enable student-subscribers to follow live trades, effectively providing investment advice.

Rigi, in response to questions from Finwealth, clarified that Kar used a Telegram channel as an extension of his educational courses through their platform. They emphasized that the content within the channel is solely Mr. Kar’s responsibility, and Rigi functions as a facilitative platform without controlling or overseeing the content. They also restricted services related to Kar’s Telegram channel to comply with updated guidelines after making SEBI registration mandatory for influencers selling securities-related content.

While Rigi made SEBI registration a requirement, the company asserted that it operates in the IT/ITeS sector and is not directly regulated by SEBI. Their main role is to provide technological tools for content creators to engage and monetize their audience.