The Securities and Exchange Board of India (SEBI) has introduced new regulations that significantly impact financial influencers, commonly known as finfluencers. As per the new guidelines, content creators covering the stock market will no longer be allowed to use live market data. SEBI has mandated that only stock price data that is at least three months old can be used while providing market-related educational content.
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SEBI Issues a Late-Night Clarification
On January 29, SEBI issued a clarification regarding its circular on “Investor Educators.” The market regulator made it clear that any individual offering stock market education must use stock price data that is at least three months old. This move effectively prohibits finfluencers from providing real-time market updates, stock trends, or investment suggestions.
Ban on Partnerships Between Registered and Unregistered Entities
In 2024, SEBI had already restricted partnerships between registered and unregistered entities. The latest decision is expected to put an end to finfluencers who mislead investors under the guise of investment tips. SEBI’s circular states that registered entities cannot have financial or non-financial relationships with such influencers, nor can they promote them through advertisements.
Investor Education Still Allowed
Despite the new restrictions, SEBI has clarified that there is no ban on investor education. However, it must be ensured that investment tips are not shared without proper registration. Additionally, no stock performance should be displayed without SEBI’s approval.
