Zerodha Launches Verified P&L To Bring Accountability

Leading trading platform, Zerodha has launched a feature called, 'Verified P&L' to curb unfair and fake trade profit and loss assessments, which are common on various social media platforms in the form of screenshots, videos, etc.

Users can post their profit and loss report publicly using the Verified P&L feature on Zerodha's Console, the company claims. This report's authenticity is assured by the fact that users can share it via a link. Verified P&L report protection against manipulation or tampering, which guarantees its authenticity, was also mentioned.

"We launched verified P&L at Zerodha to bring accountability, given all the fake P&L screenshots and videos shared on social media to peddle courses, advisory, trading accounts, & other financial products," said Nithin Kamath, founder & CEO of Zerodha,

The Rise of Finfluncer

People now have a new way to obtain and understand financial information thanks to the recent rise of financial influencers, or "finfluencers," as they are also known. Finfluencers are people who imparts knowledge and guidance on a variety of financial issues to regular investors, such as stock market trading, personal finance, and mutual funds.

They are almost under regulatory control, though, since the market regulator SEBI has suggested ways to limit their growing numbers. The plan stipulates that finfluencers must register with SEBI and abide by certain rules. The proposal also advises banning unregistered finfluencers from working with stockbrokers and mutual funds on promotional projects.

Although many finfluencers offer insightful information, there is rising worry about the risks posed by uncontrolled finfluencers who might give biassed or inaccurate advice. Typically, they use a commission-based business strategy.

However, as market regulator SEBI has proposed measures to restrict their expanding numbers, they are now close to being the subject of regulatory oversight. Late last month, SEBI released a consultation document seeking to limit the affiliation of registered intermediaries or regulated businesses with unregistered influencers in order to mitigate the risk associated with finfluencers.

As per the proposal, finfluencers are required to register with Sebi and follow specific guidelines. Additionally, the proposal suggests prohibiting unregistered finfluencers from collaborating with mutual funds and stockbrokers for promotional activities.