How new Sebi regulations will reshape the finfluencer landscape

The Securities and Exchange Board of India (SEBI) has imposed stringent restrictions on financial influencers, or "finfluencers," prohibiting them from using live stock market data in their educational content. The new regulations, announced in a circular late Wednesday evening, mandate that stock market educators can only use stock price data with a three-month lag. This effectively bars them from providing real-time trading tips under the guise of education.

Since SEBI announced its new regulations less than a week ago, financial influencers and agencies have yet to notice a drop in brand deals. On average, influencers secure four to five brand collaborations per month to maintain authenticity in their content. However, the immediate impact of these rules has been more on public perception rather than sponsorships. With their credibility now under scrutiny, many influencers are facing increased skepticism and negative attention, raising concerns about how these changes may affect their reputation in the long run.

According to finfluencer Sharan Hegde's manager Ayush Monga, financial influencers are often wrongly grouped. He clarified that some influencers prioritise financial education, teaching concepts like budgeting and saving rather than recommending stocks. This differentiation is often overlooked but remains key to understanding the impact of SEBI’s regulations.

“SEBI’s new regulations primarily impact influencers involved in stock recommendations and real-time trading content. Personal finance educators remain unaffected, as they focus on broader financial wellness rather than speculative trading," Monga explained. He also highlighted that financial influencers typically engage in three to four brand deals per month, with those promoting personal finance education maintaining stable partnerships despite SEBI’s regulations.

According to the government circular, individuals engaged in education should not use market price data from the preceding three months in any form—including speeches, videos, tickers, or screen shares—to indicate future price movements, advice, or recommendations. The decision aims to crack down on illegal advisory services operated by unregistered finfluencers. SEBI had initially restricted associations between registered and unregistered entities in its October 2024 circular, and the latest update further tightens these regulations. 

Brand Deals and Industry Shifts

The crackdown has caused brand deals for financial influencers to take a hit, with the number of collaborations dropping significantly. Sumon K Chakrabarti, Co-Founder & CEO of Buffalo Soldiers, noted that brands are now more cautious about partnering with unregistered financial influencers.

“Previously, financial influencers offering live market updates and trading advice commanded substantial rates, with earnings ranging from Rs 1-3 lakh per post. However, this market has shrunk by 40-60%, forcing brands to pivot towards long-term financial products and educational content,” he said.

Companies promoting Systematic Investment Plans (SIPs), mutual funds, and retirement plans see this as an opportunity to collaborate with influencers focused on financial education rather than real-time stock tips. This shift is expected to push finfluencers towards content focused on market trends, investment strategies, and financial literacy, altering their relationship with audiences.

Anirudh Sridharan, founder of HashFame, clarified that “SEBI’s crackdown specifically targets stock market-related advice, not personal finance education. Influencers focusing on banking products, insurance, retail, and mutual funds will continue securing brand deals, as these fall under different regulatory oversight. The primary impact is on those promoting trading apps and stock recommendations without proper disclosures.”

“SEBI’s move is also intended to curb misleading financial advice and ensure that retail investors are not manipulated into high-risk investments," Sridharan noted. He added that the crackdown will help distinguish credible financial influencers from those engaging in misleading promotions. Influencers with registered credentials stand to benefit as they can continue discussing financial products with credibility.

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The Future of Finfluencing in India

For finance influencers, the cost-per-view (CPV) remains significantly higher than lifestyle content, ranging from Rs 3 to Rs 5 per view, compared to Rs 0.7 to Rs 1.2 in lifestyle categories. However, the diversification of content must be strategic to avoid diluting their niche influence and earnings potential.

Brand collaborations are now heavily dependent on an influencer’s credibility and engagement. Payments for finance influencers typically range between Rs 1.5 to Rs 3.5 per view, varying based on audience size and engagement metrics.

Legal experts have also weighed in on SEBI’s move. Sonal Alagh, Partner at Alagh & Kapoor Law Offices, remarked that while the restrictions impose limitations on financial educators relying on current market trends, the regulations serve a greater purpose in protecting investors from misleading financial advice disguised as education. The ability to discuss market trends is integral to financial literacy, and the challenge lies in balancing regulatory oversight with freedom of educational discourse.

Pranav Bhaskar, Partner and Head of Corporate Practice at SKV Law Offices, added that the primary objective of this regulation could be to address stock market manipulation, specifically “pump-and-dump” schemes driven by influencers. However, rather than a blanket restriction, SEBI could consider more targeted measures, such as limiting discussions around speculative parameters like market sentiment or company credibility. More critically, enhanced disclosure norms could be imposed to ensure transparency and mitigate conflicts of interest, including restrictions on influencers discussing their personal investments in specific stocks.

“A sweeping ban on discussing recent market data may inadvertently hinder financial education by restricting content creators from analyzing credible publications or drawing comparisons from case studies on market trends. A more balanced approach would be to enforce stricter disclosures and nuanced restrictions, ensuring that educational content remains a reliable source of information while safeguarding market integrity,” he said.