'These Are Fake...': Raghuram Rajan Denounces Fraudulent Investment Advice Videos

Raghuram Rajan, who served as the 23rd Governor of the RBI, in a LinkedIn post clarified that he does not provide public investment advice, particularly on specific stocks

Raghuram Rajan said that these videos are deceptive and urged viewers to report such activities to the appropriate authorities. ( Image Source :PTI )

Former Reserve Bank of India (RBI) Governor Raghuram Rajan has issued a stern warning against fraudulent videos on social media falsely claiming to feature his investment advice. In a statement posted on LinkedIn, Rajan said that these videos are deceptive and urged viewers to report such activities to the appropriate authorities.

Rajan, who served as the 23rd Governor of the RBI and is currently a distinguished professor at the University of Chicago Booth School of Business, clarified that he does not provide public investment advice, particularly on specific stocks.

"I understand there are videos of me on various social media purporting to give advice on investing, especially in individual stocks. These are fake and the perpetrators should be reported to the relevant authorities. I do not give investment advice to the public, and have never touted individual stocks," Rajan said.

He reiterated his long-standing financial principles, advising individuals to avoid investing in specific stocks without proper analysis and diversification. "Each individual has their own financial needs and risk appetite. Furthermore, investors are typically better off holding diversified portfolios of bank deposits, bonds, and stocks (through mutual funds and ETFs) rather than buying individual stocks or stock options," he explained.

Rajan highlighted the risks associated with investing in individual stocks, warning, "You may be extremely lucky and strike it rich, but more likely, you will be a lot poorer following the latter strategy."

The statement garnered significant attention, with over 1,700 likes and numerous comments. One user remarked, "Kindly publish this over other social media channels i.e Instagram, Facebook etc. Candidly speaking, I was so disturbed to see your name till yesterday over the matter of investment advice and was 80 per cent sure that it is fake. Today, it’s clear." Another commented, "Not only you sir, many other people's name used in such fake ads."

The circulation of misleading investment advice falsely attributed to high-profile figures such as Raghuram Rajan and Ratan Tata has prompted these individuals to issue public statements cautioning against fake news. Rajan concluded his post by urging the public to disregard any videos or content attributing investment recommendations to him.