Sebi Rules Rewrite The Finfluencer Playbook As Influencers Turn Businesses Instead Of Content Creators
India’s fast-growing finfluencer ecosystem is undergoing a structural transformation after the Securities and Exchange Board of India (Sebi) introduced stricter regulations for financial content creators. What began as an informal ecosystem of social media finance advice is now evolving into a regulated industry where influencers must register as licensed entities to legally monetise their credibility.
Sebi’s decision to bring digital-era financial advice under a formal regulatory framework has effectively “reset” the business model for finance creators. The move has forced many influencers to rethink their strategies and pivot toward structured businesses rather than relying solely on sponsorships and affiliate income.
Market participants believe the regulatory shift could improve investor protection while encouraging serious creators to build sustainable businesses. However, the transition has also reduced the number of active finfluencers and changed how brands and investors engage with them.
Sebi Regulations Are Pushing Finfluencers Toward Registered Financial Businesses
Following Sebi’s regulatory framework, finance influencers who provide financial guidance now have limited options to continue operating legally. According to finance content creator Shashank Udupa, creators now essentially have only three structured routes available:
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Registered Investment Adviser (RIA)
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Research Analyst (RA)
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Mutual Fund Distributor (MFD)
Udupa explained the limited pathways clearly, saying:
“There is no other option… you have only two or three routes, if you’re a financial influencer.”
The regulatory changes have effectively formalised the industry, making licensing mandatory for those providing financial recommendations or investment advice. This shift has increased compliance costs and operational complexity, but it has also improved credibility for registered platforms.
For investors, the change means that advice coming from licensed creators may carry higher accountability and transparency compared to earlier unregulated recommendations.
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Strategic Pivots Show How Finfluencers Are Building Scalable Investment Platforms
Several prominent finfluencers have already shifted toward regulated business models in order to monetise their audience trust legally and sustainably.
Sharan Hegde, founder of The 1% Club, became one of the first finfluencer-led platforms to secure a Registered Investment Adviser (RIA) licence. His platform represents a broader industry shift toward subscription-based financial education and advisory services.
Shashank Udupa followed a different route by choosing the Research Analyst (RA) model. He initially began his individual RA practice in October 2025 through Smallcase before securing his Sebi Research Analyst licence in June last year.
Udupa later launched Vayu Capital, which has shown rapid early growth.
Key milestones include:
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1,000 customers achieved within 30 days
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Around 1,800 subscribers currently
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Nearly ₹25 crore Assets Under Management
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Achieved within less than six months
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12-member team based in Bengaluru’s HSR Layout
Udupa said:
“We had a one-year target of around 1,000 customers… But we hit 1,000 in 30 days.”
The company now plans to transition from an individual RA structure to a corporate Research Analyst entity, which offers greater operational flexibility.
Future expansion plans include:
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Corporate RA structure
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Portfolio Management Services (PMS) launch
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Expansion of research capabilities
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Possible investment app development
He noted that PMS services could be launched around 2027 after building the required team capabilities.
Finfluencer Brand Deals Have Shrunk As Regulation Changes Industry Economics
The regulatory reset has significantly changed the economics of influencer marketing in the finance space. According to Udupa, the era of “stupid money” between 2021 and 2022 — when venture-funded startups paid premium rates for influencer reach — has largely ended.
Brand partnerships still exist but are now more selective and lower-paying.
For example:
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Earlier (2021–22):
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40,000–50,000 YouTube views
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₹2 lakh for a 30–45 second brand integration
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Now:
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Slightly lower views
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Around ₹1.25 lakh for similar integrations
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Payments nearly 40–50% lower
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Udupa explained:
“Today… the number of brands have increased because the traditional guys have come in, but the cost that they used to pay before is half right now.”
He also noted a shift in audience behaviour:
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Average views dropped from 50,000 to 30,000–35,000
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Audience now more mature
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Speculative interest declined
“The audience that is currently watching is a more mature audience. The euphoric audience has reduced a lot,” he said.
Despite reduced monetisation opportunities, content platforms remain valuable long-term assets.
Udupa described his YouTube channel as:
“A real estate asset… It is my best-performing asset till date.”
Subscription Models And Investment Products Are Emerging As Sustainable Revenue Streams
The shift toward regulated models is also changing how finfluencers generate revenue. Instead of relying primarily on sponsorship income, many creators are now focusing on subscription-based research products and advisory services.
Udupa expects:
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Around 3,000 subscribers in year one
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Revenue of ₹2.5–3 crore
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Self-funded operations
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Expenses below ₹1 crore
He explained the business approach:
“Our expense would not be more than a crore. So that would be a very good margin for me to play around with.”
Excess capital will be deployed toward:
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PMS development
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Technology platforms
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Research expansion
He also confirmed that discussions are underway for a research-focused mobile application, although the project remains in early stages.
Here’s What Happened Today And Why Traders Reacted
The Sebi finfluencer regulatory reset is being closely tracked by market participants because it signals a broader institutionalisation of retail investing in India.
Key developments include:
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Mandatory licensing for finfluencers
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Shift from sponsorships to advisory products
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Growth of registered platforms
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Reduced unregulated financial advice
For traders and investors, the changes could lead to:
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More reliable investment advice
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Better disclosure standards
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Reduced misinformation risks
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Higher trust in financial content
However, the transition period may reduce the volume of retail trading activity driven by social media trends.
What Impact The Sebi Finfluencer Rules Could Have On Investors And Markets
The long-term impact of Sebi’s finfluencer regulations could be significant for India’s capital markets.
Potential positive impacts include:
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Better investor protection
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Reduced mis-selling
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Higher transparency
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Professionalised financial advice
Potential challenges include:
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Reduced free content availability
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Higher advisory costs
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Smaller creator ecosystem
Udupa summarised the industry transformation clearly:
“The guys who are serious and playing the long game got themselves registered.”
He also noted:
“Especially English-speaking creators in the finance space are very less… Most of them have got registered and started going into the product route.”
The shift marks a transition from influencer-driven speculation toward regulated financial advisory businesses — a development that could reshape India’s retail investing landscape over the next decade.
