SEBI proposes intermediaries stay away from ‘finfluencers’

Sebi has proposed that intermediaries should dissociate themselves from unregistered financial influencers, also known as “finfluencers”.

The Sebi consultation paper comes amid a rise in the number of unregistered investment advisors giving out stock tips on social media platforms.

“No SEBI registered intermediaries or regulated entities or their agents or representatives shall, directly or indirectly, have any association or relationship in any form, whether monetary or non-monetary, for any promotion or advertisement of their services or products, with any unregistered entities (including finfluencers),” Sebi said in the consultation paper.

The paper said SEBI-registered intermediaries should take active measures to dissociate themselves from any unregistered entity using their name, product or service. It proposed that entities registered or regulated by Sebi, stock exchanges or the Association of Mutual Funds in India should not share confidential information of their clients with unregistered entities.