SEBI’s bond ad curbs get thumbs-up, but finfluencers seek clarity

SEBI’s proposed curbs on FOMO-led bond advertising and influencer promotions are being viewed by the financial creator industry as a necessary credibility reset, even as creators warn that tighter compliance could make them more hesitant about sharing financial information. The proposals could also draw a clearer line between creators educating audiences about money and those promoting specific investment products.

The proposed framework seeks greater scrutiny of claims such as “high returns”, “high yield” and “fixed returns”, while discouraging urgency-led messaging and requiring more product and risk information in bond advertisements. For the creator economy, the impact may depend largely on the type of financial content being produced.

As per, SEBI's Investor Survey found that 62% of investors make some investment decisions based on finfluencer recommendations. It also found that 56% of investors use financial influencers on social media as a source of information about securities-market products. YouTube was the most sought social platform at 91%, followed by Instagram at 64% and Facebook at 61%.

Read On: Sebi looks to rein in FOMO-led bond marketing and influencer promotions

Speaking to e4m, finfluencer Ankur Warikoo said the proposed changes are likely to have a limited impact on creators whose content focuses on personal finance education rather than specific investment recommendations. He said creators discussing individual stocks and mutual funds were already operating within a more regulated environment.

“It mainly affects those who create content around specific stocks and mutual funds. Most of the bigger creators were already under the existing rules and had their registration numbers on screen. I focus on teaching personal finance and the principles of investing rather than speaking about specific investments,” Warikoo said.

Under SEBI’s existing framework, the distinction is between financial education and investment advice. A person providing investment advice or recommendations relating to securities is required to be registered with SEBI or otherwise permitted by the regulator. However, SEBI’s rules allow those engaged solely in investor education to operate without such registration, provided they do not directly or indirectly provide investment recommendations or make claims about returns or performance. The regulator has also restricted SEBI-regulated entities and their agents from associating with unregistered persons who provide such advice or make return-related claims.  

The distinction could become increasingly important as brands reassess how they use financial creators.

Ayush Shukla, Founder of Finnet Media, told e4m that the regulatory tightening has already resulted in a sharp correction in the financial creator market, with brand deals for finance creators declining by 40-60%. However, he sees the disruption as necessary to restore credibility.

“SEBI regulating finfluencers is the best thing to happen to India’s creator economy in the last five years. There is short-term pain, but it will lead to a more professional and credible market where creators are valued for genuine expertise rather than sensationalism,” Shukla said.

Read On: SEBI's finfluencer rules to push brands to prioritise credibility over reach

Nikhil Aggarwal, Founder and Group CEO of Grip Invest, shared:

“The most important thing SEBI has done here is give the industry clarity. 'Fixed returns', 'predictable returns' and 'passive income' can now be used, with the right disclosures, because they genuinely describe what a bond is. Standardising issuer, tenor, rating, price and yield in every advertisement raises the floor for the whole ecosystem and makes it harder to sell risk as certainty. As bonds move from a metro, tech-savvy audience to first-time investors across the country, that discipline in how we communicate is what will keep trust intact.”

For creators, however, the concern is that tighter scrutiny could sometimes blur the distinction between providing information and giving investment advice. Sharing his perspective with e4m, finance creator Dhruv Sabharwal said creators are already becoming more careful about verifying information, but the regulatory environment can create an additional layer of hesitation.

“There is always an extra fear on the creator side about whether something I share could come under scrutiny. We already triple-check information before posting, but sometimes genuine knowledge gets sacrificed because of the licensing barrier, even when the intention is only to educate,” Sabharwal said.

The regulatory reset is also coinciding with a wider change in how BFSI brands evaluate influencer campaigns. Shukla said advertisers are increasingly looking beyond headline view counts, particularly where inflated reach does not translate into meaningful consumption.

He cited a recent BFSI campaign in which a creator’s reel crossed 150,000 views but recorded a skip rate above 90% and average watch time of less than two seconds. Such metrics, he said, raise questions about whether the content is actually reaching an engaged audience.

“Views in isolation no longer matter. Brands need to look at average view duration and skip rate. If a 60-second video is not even being watched for five seconds, the integration is effectively not being seen, regardless of whether the reel crosses one lakh views,” Shukla said.

The larger implication of SEBI’s proposed framework could therefore extend beyond advertising language.

As brands become more cautious about financial endorsements and creators become more conscious of what they can say, the market could increasingly favour those who can demonstrate both credibility and genuine audience engagement.

The challenge, however, will be to ensure that tighter regulation does not inadvertently discourage responsible financial education. For creators, the distinction between explaining financial concepts and promoting an investment product will become increasingly important as Sebi seeks to make the rapidly growing digital investment ecosystem more transparent and accountable.