SEBI's Crackdown Aims to Regulate India's Financial Influencer Market

India’s financial content creation scene, once a goldmine for influencers, is undergoing a significant transformation. The Securities and Exchange Board of India (SEBI) has launched a stringent crackdown on financial influencers, or “finfluencers,” signaling a move towards stricter regulations and greater transparency.

Prominent creators such as "Baap of Chart" (Mohammad Nasiruddin Ansari), PR Sundar, and analyst Vijay Thakker have come under SEBI's scrutiny. Ansari was fined Rs 17.2 crore and banned from the securities market. Similarly, Ravindra Balu Bharti faced an order to return Rs 12 crore earned from an unregistered investment advisory business. SEBI's actions were in response to alleged violations, including exaggerated claims of returns from 25% to as high as 1000%.

Stricter Guidelines for Financial Content

SEBI has introduced new guidelines requiring financial influencers to register, disclose credentials, and avoid conflicts of interest. Rahul Tekwani, Managing Partner at Branding Edge, stressed that collaborating with SEBI-registered advisors and being transparent about advice sources can help influencers maintain credibility. He highlighted concerns about informal platforms like WhatsApp and Telegram being used for financial advice, calling for SEBI to extend its monitoring to such channels.

High Stakes for Financial Creators

The finance niche is one of the most profitable areas for Indian influencers. A well-established financial content creator can earn up to Rs 4–5 lakh per month from brand deals and advertising revenue. Justin Lawrence, YouTube's Head of Platform Monetisation, noted that creators with 10 million views on finance-related videos can make between $3,000 to $4,000 monthly, due to the high Cost Per Mille (CPM) rates in the finance sector.

Restoring Credibility in a Volatile Market

Tekwani emphasized the importance of transparency, categorizing content as informational, advisory, or promotional, and including disclaimers about revenue sources. He acknowledged past instances where some influencers manipulated stocks for personal gain, often harming retail investors during market corrections.

Justin Lawrence echoed this sentiment, underlining that unlike beauty or entertainment influencers, financial influencers have a unique responsibility to their audience. "One wrong recommendation could lead to substantial financial losses," he warned.

Audiences Demand Accountability

Today’s digital audience is highly discerning, quick to dismiss unethical practices. Tekwani highlighted that ethics and transparency aren’t just industry standards but survival tools for financial influencers. Emphasizing education about risks, market volatility, and the importance of long-term strategies is seen as a pathway to building audience trust. Lawrence added that authenticity and accuracy must take precedence over flashy trends in finance content.

A New Era for Finance Creators

As financial influencers adjust to tighter scrutiny, they are encouraged to shift towards general financial education rather than offering specific stock tips. Lawrence suggested adopting membership models for tailored advice, similar to consulting a financial professional, to maintain credibility while adding value.

The Road Ahead: Regulation as an Opportunity

While SEBI’s stricter rules may seem like a clampdown, they represent a chance for the financial content industry to professionalize and distinguish itself. “This isn’t just about following regulations—it’s about shaping the financial habits of a new generation responsibly,” said Tekwani. He urged creators to embrace this era with care, understanding their role in shaping the future of finance in India.

With SEBI's new rules in place, the Indian financial content space is poised to evolve into a more ethical and accountable environment.