The market regulator, SEBI, has introduced new rules for financial influencers—known as “finfluencers”—who share stock tips on social media. These rules aim to stop people from pretending they are just giving educational advice when they are really pushing for stock purchases.
According to the new rules, finfluencers must not use the latest stock price data from the last three months when they talk about a stock. They can’t mention any company’s name or even use code names if they’re just providing educational content. If someone wants to give advice or recommendations related to stocks, they must be a registered advisor.
Moreover, finfluencers who are not registered are not allowed to promise any returns or profits, directly or indirectly. If they break these rules, there could be serious consequences like fines, losing their registration, or even being banned from their activities.
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