Mumbai, July 3, 2025 — The Securities and Exchange Board of India (SEBI) is stepping up its regulatory offensive against unregistered financial influencers, or ‘finfluencers’, by initiating direct dialogues with major digital platforms such as Google and Telegram. According to regulatory sources, the market watchdog is now executing a multi-pronged strategy to dismantle fraudulent investment promotion via social media, which has emerged as a significant threat to retail investors. This comes amid mounting cases where platforms like YouTube and Telegram have been used to propagate fake narratives around obscure stocks.
Highlights
SEBI confirms talks with Google, Telegram to curb unregistered finfluencers.
Strategy includes both preventive and curative measures involving platforms.
Investor harm from misleading stock tips on YouTube, WhatsApp, and Telegram cited.
SEBI emphasizes platform cooperation and may limit ties with non-compliant firms.
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Enforcement Tactics Tighten as Platforms Face Business Consequences
In its formal communication, SEBI acknowledged that most digital platforms have been cooperative and indicated that enforcement actions are underway to prevent future misuse. A regulatory official warned that platforms failing to comply could risk their partnerships with SEBI-regulated financial institutions, potentially impacting their advertising revenues and broader business relationships. SEBI’s intent is to eliminate any indirect or direct promotional tie-ups between market-regulated firms and content creators who lack appropriate registration or provide unverifiable investment advice.
Highlights
Platforms not aligning with SEBI’s goals may lose access to SEBI-regulated partners.
Unregistered influencers barred from sponsorships, referral deals, or monetary links.
All financial marketing must adhere to strict regulatory associations.
Legal Definition of Association Redefined Under New SEBI Norms
SEBI’s amended regulations now provide granular clarity on what constitutes an “association.” The term now encapsulates any transaction involving monetary benefit, client referrals, digital system interactions, or similar engagements between registered entities and unregistered finfluencers. Notably, exceptions apply only to platforms classified as “specified digital platforms”—those that maintain robust systems to prevent unauthorized financial advice. These platforms must vet individuals claiming to offer investment guidance, blocking any content that promises guaranteed returns or unverifiable performance metrics.
Highlights
SEBI outlines strict definitions of influencer–firm relationships.
Only verified digital platforms with monitoring mechanisms can host registered advisors.
Ban includes indirect sponsorships and performance-based promotions.
Investor Awareness Becomes Regulatory Focal Point Amid Proliferating Scams
SEBI reaffirmed that public education and investor awareness campaigns remain core to its strategy for retail investor protection. The regulator continues to issue advisories urging caution when acting on unsolicited tips or social media posts. It flagged the perils of fixed-return promises often disseminated by influencers impersonating financial experts. These narratives, when left unchecked, have previously led to massive investor losses, as documented in multiple enforcement orders over the past year.
Highlights
Investor awareness campaigns a central tool in fraud mitigation.
SEBI warns against responding to fixed-return or high-return social media posts.
Public urged to verify advisor registration with SEBI before acting on tips.
Meta Joins Effort with Mandatory Verification for Financial Advertisers
Adding momentum to the regulatory cleanup, Meta has rolled out new policies mandating that all financial advertisers targeting Indian audiences verify their SEBI registration. Effective July 31, the updated policy will apply across Facebook, Instagram, WhatsApp, and Messenger. Advertisers must disclose both the beneficiary and the funding source of each investment-related campaign. This move complements SEBI’s crackdown and signals a broader, industry-wide shift toward greater accountability in digital financial marketing.
Highlights
Meta mandates advertiser verification for all India-targeted financial ads.
Enforcement starts July 31; applies across Facebook, Instagram, WhatsApp.
SEBI registration details must be submitted by advertisers for compliance.
