India Cracks Down on ‘Finfluencers’: New Rules Hold Them Accountable for Investment Advice

The Securities and Exchange Board of India (SEBI) has taken a decisive step to regulate the growing influence of ‘finfluencers’ – individuals offering financial advice without proper registration. The new regulations prohibit registered financial institutions from associating with unregistered finfluencers in any way, including monetary transactions or client referrals. This move aims to protect investors from potentially biased or misleading advice, often presented with the promise of quick returns. SEBI emphasizes the importance of accountability and expertise, requiring finfluencers to register with them and adhere to specific guidelines. While exceptions exist for registered entities working through SEBI-approved platforms, the primary focus remains on holding unregulated finfluencers accountable for their advice.