Context: The Securities and Exchange Board of India (SEBI) recently barred a prominent finfluencer from participating in securities markets for illegal gains obtained through unregistered advisory services.
Who are Finfluencers?
Finfluencers are social media influencers who provide content on:
oInvestments
oPersonal finance
oStock markets, mutual funds, and other securities
They operate on platforms such as Instagram, YouTube, Twitter/X, and Telegram, influencing retail investors’ decisions.
Regulatory Framework – SEBI Guidelines
Investment Advisers Regulations, 2013
1Mandatory Registration
oAny person providing investment advice must register with SEBI as:
§Research Analyst (RA), or
§Investment Adviser (IA)
2Prohibited Activities for Unregistered Individuals
oOffering specific investment recommendations
oMaking performance claims about securities
oCollecting fees for advisory services without registration
Objective
- Ensure investor protection, prevent market manipulation, and maintain transparency and credibility in investment guidance.
Significance
- Highlights risks of unregulated social media advice in financial markets.
- Signals SEBI’s active monitoring of digital advisory platforms.
- Aligns with global concerns over misinformation in financial literacy and investment advice.
IAS-2026 - OPTIONAL / GEOGRAPHY / PUBLIC ADMINISTRATION / SOCIOLOGY / ANTHROPOLOGY / ORIENTATION ON 03 & 04-10-2025 
