The Securities and Exchange Board of India (SEBI) has introduced strict new guidelines targeting unregistered stock-market influencers, known as 'finfluencers', to curb illegal trading advice. A circular issued on January 29, 2025, stipulates that individuals or entities offering stock-market education must no longer use live market prices in their teachings. The new regulations also prohibit providing investment advice or performance claims unless the entity is registered with SEBI.
This measure seeks to end the practice of finfluencers offering real-time stock tips under the guise of educational content. Under the new rules, market prices used in educational material must be at least three months old, preventing any real-time stock recommendations. Registered entities are also barred from associating with finfluencers engaging in these activities.
SEBI’s move follows its October 2024 circular restricting the association of registered entities with unregistered influencers, aiming to eliminate a significant loophole. The crackdown is seen as a response to the growing issue of finfluencers providing unregulated stock advice, often misleading followers and breaching regulatory standards.
Read the full circular here: