SEBI Tightens Norms for Unregistered Financial Influencers

SEBI, the Indian market regulator, has introduced new rules to control unregistered financial influencers, known as 'finfluencers.' The changes prohibit SEBI-regulated entities from associating with unregistered individuals providing financial advice or making return claims. The move aims to mitigate risk and ensure accountability in the financial sector while allowing limited scope for investor education.

In a bid to mitigate potential risks associated with unregistered financial influencers, SEBI has implemented stringent new regulations.

Through three distinct notifications, SEBI has prohibited associations between its regulated entities and unregistered individuals, specifically targeting those offering financial advice or making explicit claims of returns.

The regulatory board sanctioned this measure last month, mandating SEBI-regulated entities and their agents to sever any financial or information-sharing ties with unregistered advisors, ensuring enhanced accountability and expertise within the financial sector.