SEBI Targets Unregistered Finfluencers with Strict New Rules

The Securities and Exchange Board of India (SEBI) has released a draft circular to tackle unregistered financial influencers (finfluencers) providing investment advice under the guise of education. SEBI’s new regulations forbid using live market prices in educational content and prevent unregistered finfluencers from making return claims. Registered entities can no longer associate with these unregistered influencers.

These measures aim to reduce misleading financial advice and protect investors from potential losses. The circular states that educational content cannot include market price data from the previous three months or offer any investment advice. Penalties for violations include fines and suspension of registration.

This action will affect many finfluencers offering stock tips and trading calls without proper registration. SEBI’s stringent measures ensure transparency and accountability in online financial advice.