'Don't Club Everything As F&O Volatility': SEBI's Tuhin Kanta Pandey Flags Finfluencer-Driven 'Hyperactivity'

Tuhin Kanta Pandey, a key official at the Securities and Exchange Board of India (SEBI), has urged caution against attributing market volatility solely to futures and options (F&O) trading. In recent discussions, Pandey emphasized that the fluctuating nature of the markets should not be oversimplified or linked directly to the activities of 'finfluencers', who often drive excessive trading behavior among retail investors. He highlighted the need for a nuanced understanding of the factors contributing to market dynamics, advising against blanket interpretations that could mislead investors and regulators alike. This statement comes in the backdrop of increasing concerns regarding the impact of social media on trading patterns, where influencers can create a rush of speculative trading, leading to heightened volatility. SEBI continues to monitor these trends closely as it seeks to ensure market integrity and protect investors from potential risks associated with speculative trading practices.