New guidelines for financial influencers under works, says Sebi

Merely giving disclaimers may not guard finfluencers from regulatory action

The Securities and Exchange Board of India (Sebi) is formulating guidelines for financial influencers or finfluencers, curbing the unsolicited and rampant stock recommendations and financial advice on social media platforms without availing the market regulator’s registration.

At the sideline of an event in Mumbai, Sebi whole time member Santosh Kumar Mohanty said, “Sebi is working on guidelines for financial influencers.”

The watchdog had earlier warned investors to not rely on stock tips, recommendations and financial advice received on social media platforms.

Mohanty clarified that even if there is a lack of contract, they may be liable for action for giving