SEBI paper on finfluencers: ‘Regulated Entities must stay away from unregistered investment advisors’

Besides undertaking enforcement action against unregistered finfluencers who breach SEBI regulations, the regulator proposes to disrupt the revenue model for such finfluencers, so that the perverse incentives in the ecosystem reduce. SEBI has come across instances where SEBI registered intermediaries/regulated entities may be relying on such unregistered/unregulated finfluencers to promote their products and services.