Updating its latest rulebook, the Securities Exchange Board of India (SEBI) has restricted financial influencers, or finfluencers, from using the latest share price data when providing educational content. The regulator has also prohibited non-registered finfluencers from making claims about returns, with penalties for violations including fines or suspension of registration. Additionally, it pointed out that stock market educators can only use stock prices with a three-month lag, effectively preventing them from offering real-time trading tips disguised as education
As SEBI tightens regulations on finfluencers to ensure accountability and expertise, industry experts tell Storyboard18 that finfluencers can expect a significant drop in brand deals and thus income, also followed by a decline in value and followers.
Financial influencers have always walked a tight-rope. Financial brands in general are very vary of investing in influencers (even for indirect campaigns or branding campaigns), because of the regulations on both parties from SEBI.
However, there are brands from other industries that have looked at tapping into financial influencers for their reach in the audience that has higher disposable incomes and are looking at financial savings/increasing savings/etc. This kind of content does not fall under SEBI guidelines and hence is a good revenue generator for financial influencers. However, they need to keep creating content in the realm of finance to be relevant. A lot of them use live stock market prices, suggest BUY/SELL recommendations – basically use a bit of sensationalism in their content by creating content in the moment, which drives good engagement for them.
SEBI’s recent move essentially eliminates this kind of content, which helps them pull in an engaged audience, in turn hampering their brand deals, in turn taking away a huge chunk of their revenue model. And so, this isn’t just a slap on the wrist; it’s a business model collapse for those who thrived on hype rather than expertise, explains Rajni Daswani, Director – Digital Marketing, SoCheers.
The same, according to her, has caused an estimated drop of 45-60% in their overall marketing value and brand deal rates. Also the quantum of deals have drastically dropped since no one wants to be associated with anything that could be a potential red flag.
Siddharth Chandrashekhar, Advocate at Bombay High Court, remarks that SEBI’s move is not just justified—it’s long overdue. The unregulated rise of finfluencers turned investment advice into entertainment, with market predictions often based on hype rather than expertise. Many unsuspecting retail investors fell victim to exaggerated claims, half-baked strategies, and outright pump-and-dump schemes.
By banning unregistered advice and performance claims, SEBI is restoring order to the financial ecosystem. This ensures that only qualified professionals—who are accountable to regulations—can influence investment decisions. It also prevents market manipulation disguised as “opinions” and stops gullible investors from being lured into risky bets, he adds.
As of December 2024, India had approximately 232,000 finfluencers. The rates for a macro finfluencer range between Rs 1.5 lakh for an Instagram post to Rs 2.5 lakh for a YouTube video. With the new regulations, experts adds, micro and nano finfluencers be impacted the most.
“Brands now hesitate to invest in influencers without regulatory approval, shifting budgets to SEBI-registered advisors or traditional financial institutions. SEBI’s crackdown has already led to a 40-60% decline in brand deal rates,” points out Yasin Hamidani, director, Media Care Brand Solutions.
Finfluencer with over a million followers — Sakchi Jain, CA — adds that the drop in brand deals from brokerage firms and investment platforms is expected, as these partnerships often rely on promotional investment recommendations.
“SEBI’s regulations will undoubtedly change how financial influencers operate, but it is far from a dead end. While influencers who built their audience purely on stock tips or speculative market calls will face challenges, those focused on financial education, literacy, and awareness will continue to thrive,” she highlights.
Welcoming SEBI’s action to curb the rise of finfluencers who mislead investors, Manisha Kapoor, CEO and Secretary General of the Advertising Standards Council of India (ASCI), added that by prohibiting financial influencers from using trend data to promote specific scrips, funds, or make predictions, SEBI aims to curb misleading advertisements and undue influence in the market, and the use of investor education as a front for prohibited practices.
In its 2023 guidelines, ASCI cautioned financial organisations about the risks posed by unregistered influencers and their potential to misguide investors and the public.
Ripple Effect Across Sectors
Misleading claims in wellness, exaggerated ROI promises in real estate, and dubious financial endorsements may soon face similar clampdowns, believe experts.
Chandrashekhar adds that sectors with high consumer harm risks health, crypto, real estate, and lifestyle influencers thrive on aggressive, often misleading marketing. As regulatory scrutiny increases, he expects a ripple effect across sectors.
Additionally, one can expect to see significant improvements in disclosures, reduced deceptive practices, and better measurability in influencer marketing.
“SEBI’s regulations, coupled with growing consumer awareness, will push influencers and brands toward greater transparency. Platforms and regulators will collaborate to enforce stricter norms, ensuring accountability. While short-term disruptions are inevitable, the long-term gains in credibility, trust, and sustainability will outweigh the challenges. The future belongs to those who play by the (SEBI) rules,” he notes.
The financial sector is one of the first to undergo stricter regulations due to the direct monetary impact on consumers. However, healthcare and wellness sector, which claims about quick weight loss, miracle supplements, or unverified medical treatments, may face stricter scrutiny.
EdTech and coaching sector too, Jain adds, includes exaggerated claims about guaranteed job placements or unrealistic career success through online courses, which might be regulated well now.
SEBI’s crackdown is a wake-up call, and experts expect influencer marketing to move toward greater transparency and accountability in 2025.
“Stricter rules will lead to clearer “paid partnership” and “sponsored” tags, making it easier for audiences to differentiate between organic and promotional content. Influencers will be more cautious about making exaggerated statements, particularly in finance, healthcare, and investment-related content.
Also, with increasing scrutiny, brands will collaborate with more credible, knowledgeable creators, shifting away from short-term hype-driven promotions,” Jain sums up.
So while SEBI’s regulations are not the end of financial content creation—they are a course correction. Influencers who focus on genuine financial education will continue to add value. While some sectors may face similar scrutiny, it will ultimately lead to a more transparent and responsible influencer marketing landscape.