In a major move to regulate financial influencers (finfluencers), the Securities and Exchange Board of India (SEBI) has imposed restrictions on the use of live stock market data in educational content. As per a circular issued on January 29, 2025, stock market educators can now only use stock prices with a three-month delay, aimed at curbing disguised real-time trading advice.
SEBI stated that educators are prohibited from displaying or discussing stock prices from the past three months. The circular further emphasized that unregistered individuals cannot provide market advice under the pretext of education. This measure is part of SEBI’s broader efforts to combat unregulated investment advisory services.
Impact on Finfluencers
The new rules are expected to disrupt the business model of many social media-based finfluencers who rely on live market speculation to attract audiences. SEBI has been intensifying its crackdown on unregistered advisory services, with a previous circular issued in October 2024 barring registered entities from collaborating with unregistered financial influencers.
The restrictions effectively close a loophole that previously allowed influencers to offer stock predictions disguised as educational content.
Also read: SBI Research Proposes New Tax Regime Reforms
Key Provisions in the SEBI Circular
- No unverified investment advice – Only registered professionals are allowed to give stock market advice.
- No fake promises – Entities cannot claim guaranteed profits or returns without SEBI approval.
- Accountability for partnerships – Stockbrokers, exchanges, and financial firms cannot associate with rule-breaking influencers.
- Educational content restrictions – Educators cannot include hidden advice or real-time stock tips.
- Clean marketing practices – SEBI prohibits promotional collaborations with finfluencers.
- Strict enforcement – Violations may result in penalties, suspension, or cancellation of SEBI registration.
The rules, which took effect on August 29, 2024, gave firms a compliance deadline of January 2025.
Addressing Misleading Advice and Consumer Protection
Platforms such as YouTube, Instagram, and Telegram have seen a rise in unregulated financial content, blurring the lines between education and advisory services. Many influencers have been accused of offering stock tips in exchange for payments or subscriptions, often misleading retail investors. SEBI’s latest crackdown aims to protect consumers by eliminating unauthorized investment advice.
Industry Reaction and Future Outlook
The restrictions may force several finfluencers to drastically alter their content strategies. Without access to real-time market data, many may struggle to retain their subscriber base. Unregistered financial educators are now required to either seek SEBI certification or focus solely on compliant educational content.
SEBI’s directive underscores the regulator’s commitment to safeguarding market integrity and ensuring only authorized professionals provide investment advice. Violators face severe consequences, reinforcing the importance of compliance and transparency in financial services.
