ALERT! 98% of Indian Finfluencers Are NOT SEBI-Registered!

Don‘t get carried away by someone’s impressive portfolio or polished online profile. Remember, not all financial influencers (finfluencers) are SEBI-registered. SEBI (Securities and Exchange Board of India) is the regulatory authority that grants licenses to firms and individuals to operate legally in Indias financial markets. Any individual offering financial advice or guidance is required to register with SEBI. However, a report published in March 2025 reveals that only 2% of financial influencers in India are SEBI-registered.

Published in March 2025, the report reveals a striking trend: 82% of investors influenced by social media have followed recommendations from financial influencers, and 72% of them claimed to have made profits as a result.The CFA Institute reviewed 51 top Indian finfluencers and found some worrying trends:33% give direct stock tips, even though most don‘t have professional financial qualifications. 63% don’t reveal if they‘re being paid for promotions, so followers might be acting on advice that’s actually sponsored—without realizing it.

Despite their growing influence, only 2% of financial influencers are registered with SEBI (Securities and Exchange Board of India), raising major concerns about misleading advice and lack of regulation. Even more troubling, 8% of investors said they were misled or scammed—and this number jumps to 14% for those over 40.

Why You Should not Trust Finfluencers?

1. Paid Promotions:

We live in the age of influencers, where appearances can be deceptive. Many financial influencers promote products or platforms purely for money, without actually trying or verifying them. They collaborate and promote without any accountability. They rarely disclose these paid partnerships. It's wise to keep your distance and stay cautious.

2. Naïve and Unprofessional Advice:

Most finfluencers are neither certified professionals nor experienced. Taking financial advice from them can be a form of self-sabotage. Dont be fooled by their flashy lifestyle or confident claims—they may lack the knowledge to guide your financial decisions responsibly.

3. Your Precious Money Is at Risk:

Investing based on an influencer's recommendation can be extremely risky. If youre trusting unverified advice with large sums of money, you are putting yourself in a vulnerable position. Many people have already become victims of scams or bad investments this way.

Report Recommendations

The report calls for SEBI to take stronger action by tightening rules around the registration and monitoring of financial influencers. This would help make sure that only qualified professionals are giving investment advice.

A key recommendation is to make SEBI registration mandatory for all finfluencers who offer investment advice. This would ensure that only trusted and properly regulated individuals can guide retail investors. The report also suggests that regulators work closely with social media platforms to find and remove fake or harmful financial content before it affects investors.