SEBI-Registered advisor calls out finfluencers for portfolio damage

A SEBI registered Investment Advisor has slammed finfluencers (financial influencers) for misleading retail investors and damaging their portfolios.

Shruti Bhatia, a registered investment advisor, wrote on LinkedIn, “I shudder to think of the people who place their trust — and hard-earned money — in the mass-market advice dispensed by many of these so-called ‘gurus’. I’ve had to clean up the mess created by their recommendations more times than I can count, and sadly, this kind of advice isn’t going away anytime soon. Most of them don’t even mention risk profiling, which is the very first brick in the foundation of sound financial planning. Today’s ‘gurus’ are more focused on saying whatever gets clicks and selling online courses to gullible audiences, rather than offering responsible, personalized guidance.”

While the regulator acknowledged that some influencers are genuinely trying to educate investors, it warned against those crossing the line into unregistered advisory services.

This isn’t the first such action. In early 2025, SEBI issued guidelines restricting unregistered individuals from making market-linked recommendations, even if done directly. It also barred regulated entities—such as stock exchanges, brokers, and mutual fund distributors—from associating with unregistered finfluencers.

Back in 2024, the market regulator made registration mandatory for anyone providing investment advice—whether directly or indirectly—on securities.

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