Safe but sticky: Have finfluencers cracked the compliance codes?

Despite SEBI’s crackdown on financial influencers and the introduction of stricter guidelines, several finfluencers are continuing to face the regulatory heat. The recent string of penalties, bans, and ongoing scrutiny has cast a long shadow over the once-booming ecosystem of finance-led content on social media. And yet, some creators and brands seem to be adapting better than others, recalibrating their approach to stay compliant without losing audience engagement.

The Securities and Exchange Board of India (SEBI) has been clear in its stance: unregistered investment advice and misleading financial promotions will not be tolerated. Last year alone, several high-profile influencers faced action for violating SEBI’s guidelines.

Asmita Patel, known online as the “She-Wolf of the Stock Market,” was banned for offering unregistered investment advice through her trading platforms. SEBI reported that Patel had allegedly collected over ₹104 crore via illegal means. Ravindra Balu Bharti and Mohammad Nasiruddin Ansari, better known as “Baap of Chart,” were similarly penalized for offering unauthorized advice and running paid courses without registration. These actions were not isolated. They are part of a broader pattern of regulatory enforcement intended to protect retail investors.

SEBI has also introduced a regulation that prevents registered intermediaries—like brokerages and asset managers—from associating in any way with unregistered financial influencers. This is expected to curb the spread of unverified advice in the financial content space.

“Education” vs “Advice”: A Fine Line

Ayush Monga, Senior Talent Manager, said creators are now more careful about how they frame their content. “Influencers who talk about stocks or trading strategies have started including disclaimers in their captions and videos, clarifying that their content is purely informational and not a buy or sell recommendation,” he said.

However, Ayush points out that creators focused on personal finance—budgeting, credit cards, financial literacy—haven’t had to change much. “These influencers were already outside SEBI’s regulatory scope as they were not offering specific investment advice,” he added.

Still, if an influencer operates as a financial advisor while running content on social media, SEBI mandates that they must hold a Registered Investment Advisor (RIA) license.

Not All Finfluencers Are Struggling

Sharan Hegde, a SEBI-registered influencer and founder of The 1% Club, has managed to maintain brand partnerships even as he navigates his own set of challenges, including a recent round of layoffs at his company. 

MMTC-PAMP partnered with Hegde for an Akshaya Tritiya campaign, and according to Kashish Vasishta, Deputy General Manager – Marketing & E-commerce, the collaboration delivered strong results.

“Sharan is known for his quirky style, which is quite different from how we usually communicate as a brand. But he was flexible and aligned well with our tone,” said Vasishta. 

“The campaign was focused on educating consumers about the different purities of gold—something most people don’t know. We ran the campaign organically for a week, tracked performance via coupon codes, and saw over 100 gold and 50 silver orders within days. Paid promotions only amplified that.”

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The success points to a growing trend: brands are now prioritizing creators who can deliver educational content while staying within regulatory guardrails.

Brands Are Cautious, Not Pulling Out

Danny Advani, Head of Business Strategy at DOT Media revealed both brands and influencers are treading cautiously. “It’s no longer about reach or popularity alone. Brands are carefully selecting creators who are SEBI-compliant, and influencers are also picking partnerships that allow them to follow the rules,” he explained. “You can’t clap with just one hand—both sides have to align for the campaign to work.”

The violations most frequently flagged today include using live market data under the guise of ‘educational’ content, making unsubstantiated claims, and using false testimonials. 

Advani points out that the industry is slowly adjusting, with more creators moving toward fact-based, simplified financial education rather than speculative advice.

What’s Next for Finfluencers?

While the initial impact of SEBI’s crackdown has been disruptive, it led to an estimated 45–60% drop in overall marketing value and brand deal rates for influencers in February.

But most industry stakeholders agree that regulation is both necessary and long overdue. In April, the Advertising Standards Council of India (ASCI) offered some relief to finfluencers by allowing them to comment on financial matters without holding specific degrees or certifications—so long as they are not providing technical advice.

Earlier, all influencers offering advice or opinions on financial products and services in the BFSI (Banking, Financial Services, and Insurance) sector were required to hold relevant qualifications and certifications. Under the updated guidelines, influencers now need to declare their qualifications only when offering technical information or specific financial advice. For general content or public service messaging, such qualifications are no longer mandatory.

“Influencer marketing has matured beyond simple endorsements and now often involves strategic partnerships for various aspects of brand communication,” said Manisha Kapoor, CEO and Secretary General, ASCI. “The updated guidelines bring in the required nuance for influencers operating in the BFSI space.”

There is a visible shift in how financial content is being created, though it’s still too early to call it a complete transformation. With time, adherence to regulatory standards may become the norm rather than the exception.

Still, the risks for creators and brands remain high. Just last week, actor Arshad Warsi, his wife Maria Goretti, and his brother were named in a SEBI order for their involvement in a coordinated pump-and-dump scheme. The case involved misleading videos and social media posts that misinformed retail investors. SEBI ordered disgorgement of ₹58 crore from more than 60 individuals and entities involved.

The message is clear: financial content creators must operate with caution, transparency, and compliance. For those who do—like Sharan Hegde and a few others—the trust of brands and audiences continues to be within reach.