This is a good update Nitin. The fundamental problem is that everything is addressed as a knee jerk reaction. It’s a person’s freewill on what they choose to believe or not believe.
@nitin. Yes we understand that there are many people who are making a living by this zerodha referal and they help in getting new customers.
But Finfluencers are exploiting that features, and even trading with a fraction of that money is a huge amount to lure retailers into the trap. And it’s only a handful of people doing this.
So, What if this amount is capped to a limit , so that the luring of the customers is limited and doesn’t affect the marketing people who actually work hard to bring in customers.
Like you can cap it to Number of accounts under a person or PAN or you can limit on the amount generated on a monthly basis.
Kind of a win win for both.
This is the only clean regulatory way of doing this.
While option trading is what contributes 80% of exchange volumes, over 80% of the people who trade the markets actively don’t do options trading. Last year ~40lks people traded options, the remaining 2crore+ did equity trading. Affiliate, referral, authorized person, and partner programs help broaden the overall market.
That said, I do get what you are saying and like I explained, there has to be a regulatory framework that enforces everyone to follow the same rule. In my guess, it is coming very soon.
Adding the other comments to the same post as my answer is similar.
All the craziness has been in the last couple of years, especially since Covid. And this was when every broker out there was giving out affiliate links. But if I could go back in time and undo this, given the knowledge I have today of what it turned into, we would have never launched affiliate links. By the way, I am sure, that if we hadn’t launched this, someone else would have as affiliate links are popular across different industries.
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Ah yeah, we have kind of lost out on this video content game. We have some plans, and you will start seeing something from our end soon. I think we need folks who can share their market views without any agenda; our job is to provide a platform for such folks.
Hmmm… No, it is applicable. You can go ask any decent chartered accountant or law firm. They will tell you the same. I know many companies who have received notices for having only trading income and for not being an NBFC.
With any such rules, people will end up gaming it. Have multiple accounts through which referral happens, etc. The only solution is what the SEBI consultation paper suggests.
Hi @Nitin
Regarding the finfluencers, it seems even zeordha verified can be faked. Take a look at this link.
As per the details Jan 6 , 2022 is the most profitable day. But when i am verifying the trade on that date, its no where as per the trade log.
Symbol | Qty. | Buy avg. | Buy value | Sell avg. | Sell value | Gross realised P&L |
---|---|---|---|---|---|---|
BANKNIFTY2210635700PE | 25200 | 12.94 | 3,26,027.50 | 640.23 | 1,61,33,794.99 | +1,58,07,767.50 +4,848.60% |
Can you confirm is this is fake or not.
Thanks
We have never had any issues with our P&Ls. This could be one of those contracts that was let to expire. 6th Jan 2022 is an expiry day.
It cannot be fake, as this is on our P&L page.
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How are you verifying this trade on this date?
Hi,
Long time lurker and avid follower of verified by sensibull since the genesis – actively been posting these just to support the underlying philosophy and the vision this was brought ahead with
I constantly see people spending soo much money on courses, tips etc to just eventually come around and then again lose money in the markets, it pains me and sometimes its borderline insane the amount of creativity and ingenuity that some of these finfluencers use
for instance a certain channel on YouTube has their millions of viewers very slyly believing that they are affiliated with Zerodha and makes them use his referral code to sign up. he very smartly creates this illusion without incriminating or making it obvious. its crazy – every time support flags him he makes it seem like he’s some partner and you guys personally email him etc, creates a whole spectacle out of it. sad reality but he really leverages that to gather his audiences.
SO SO Glad you’ve come out to talk about this
Ive had an Opinion: Every mentor or trainer should provide a verified track record. this should somehow be mandated, via policy and better enforcement frameworks.
Issues:
-
Secrecy surrounds track records. People aren’t comfortable revealing exact numbers – Solution: Adopt “Zero Knowledge proofs” from theoretical science. Prove track record without revealing specifics. I mean it’s a long shot since its such a theoretical thing – but ive pondered upon whether these can be applied to this problem . maybe it’ll take the genius of you and Dr. K to solve this
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Micro communities of gullible individuals arise, unaware of scams. Solution: Mandate industry-wide awareness, akin to banks’ security protocols. Brokers can play a key role.
Thanks
Shreyas
Hey Nithin
How do you really define finfluencers ?
I know a few social media fames with really large base (10Mn+) of followers (mostly lower base of the pyramid), not into trading themselves, not educated or experiened in finance.
Wrote a book on stock market, made it a hype thru own channels and paid marketing, sold a hell lot of copies, thereafter further made crores with their referral links of brokerage account opening with the same users.
There are ways and means of fooling people. How do we save ppl from these?
I have consulted many CAs and companies Kanakupillai and Enterslice who provide services related to NBFC registration. They said it’s not required. I was in the process of applying NBFC licence for my company and approached these consultants. They charge around 8L for NBFC registration. Despite that they advised me it’s not required. Do you know any law firm that can I can consult?
Thanks for replying in context although you saw that the 2 posts weren’t directed to you
Ppl generally expect knee-jerk reactions but that is always like patch work. There has to be a wholistic approach considering all cases when trying to fix these things because the crooks are always trying to outsmart the system and find ways to circumvent the regulations.
As I heard last month RA / IA licenses will be for hire