GS4 · 20 marks · 250 words
In recent years, India has witnessed an explosion of self-styled financial influencers or "finfluencers" on social media platforms like YouTube, Instagram, and X (formerly Twitter). These individuals, often without formal financial qualifications, offer stock market tips, mutual fund suggestions, crypto investment advice, and more to millions of followers. However, this unregulated space has now become a serious concern. A recent example involved a well-known finfluencer promoting a newly listed stock as a "hidden gem." Thousands of people invested in it, causing its price to spike artificially. A few weeks later, the stock crashed, revealing that the finfluencer had received undisclosed compensation from the company's promoters to create promotional content — effectively making it a "pump and dump" scheme. This led to public uproar, loss of hard-earned money by common people, and an erosion of trust in online financial content. The Securities and Exchange Board of India (SEBI) initiated an investigation but faced challenges due to loopholes in current digital regulation frameworks. Meanwhile, several other finfluencers continue similar activities unchecked. You are an officer in the Ministry of Finance, asked to look into this growing menace and propose policy and ethical safeguards (a) Identify and evaluate the key ethical issues involved in this case. (b) What steps would you suggest to ensure that financial influencers act with accountability and integrity? How would you balance the need for regulation with the right to freedom of expression? (c) What role can digital platforms and social media companies play in promoting ethical content?
Answered by 1 topper · CSE 2025
Syllabus: Public/Civil service values and Ethics in Public administration: Status and problems; ethical concerns and dilemmas in government and private institutions; laws, rules, regulations and conscience as sources of ethical guidance; accountability and ethical governance; strengthening of ethical and moral values in governance; ethical issues in international relations and funding; corporate governance.
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