Sebi targets high-profile finfluencers in widening crackdown

The Securities and Exchange Board of India (Sebi) reportedly carried out a raid against a Mumbai-based financial influencer on Thursday.

According to a report by Livemint, Sebi’s whole-time member Kamlesh Varshney said the market regulator was focusing on high-profile cases not to collect revenue but to make an impact.

Speaking at a capital markets conference organised by FICCI, Varshney said finfluencers violating Sebi’s guidelines should be aware that they are being closely monitored to ensure compliance with the law.

Varshney noted that while many financial influencers provide genuine education to investors, some misguide young people under the garb of education by using live data from the equity market.

Meta’s financial ads go SEBI-verified: A leap toward safer investment advertising?

Sebi has been cracking down extensively on unregistered finfluencers violating securities laws. The regulator is leveraging technology to flag violations in real time and is also investing in specialist talent to keep pace with market manipulation tactics such as algorithmic trading abuses and gamma manipulations.

In January this year, Sebi issued restrictions on finfluencers providing stock tips on social media platforms as part of its investor education measures.

Finfluencers are also prohibited from making claims about returns or performance of any security. The restrictions extend to advertisements, branding, and promotional material sourced through third-party marketing agencies.

SEBI slaps Rs 25 lakh penalty on BSE for granting early access to corporate disclosures

Last year, Sebi removed more than 15,000 content sites created by finfluencers spreading misleading financial advice. The regulator has also banned several finfluencers, including Mohd Nasiruddin Ansari, who ran unauthorised investment advisory services under the name Baap of Chart, and YouTuber Asmita Jitesh Patel, popularly known as the “She Wolf,” from accessing the securities market.