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SEBI proposes dissociation of regulated entities from "Finfluencers"

Startup News FYI · 1y

SEBI has released a consultation paper proposing that regulated intermediaries distance themselves from unregistered financial influencers, or "finfluencers," who provide advice on financial matters via digital media. The proposal aims to limit affiliations between regulated entities and unregistered finfluencers, seeking public opinions on the issue. The paper prohibits intermediaries from establishing connections with unregistered entities to curb promotion and endorsement activities. SEBI-registered finfluencers must prominently display their registration numbers, contact details, and investor grievance helpline information. Similar moves are seen in the Advertising Standards Council of India's influencer advertising guidelines, enhancing responsibilities for health and finance influencers.