SEBI to crackdown investment advisory services by fin-influencers

In recent regulatory actions, the Securities and Exchange Board of India (SEBI) has cracked down on individuals providing investment advisory services without proper registration. Mangayakarasi Sundar, an influencer, faced penalties, agreeing to pay a settlement amount of Rs 46.8 lakh for offering investment advisory services without regulatory approval. This settlement included a disgorgement of Rs 6 lakh, covering the profits earned from the unregistered advisory services along with interest.

Similarly, SEBI issued a warning to finfluencer Gunjan Verma in connection with allegations of providing investment advisory services without the necessary registration. SEBI’s interventions align with the guidelines set by the Advertising Standards Council of India (ASCI) in the banking, financial services, and insurance (BFSI) sector.

The revised guidelines mandate SEBI registration for influencers in this sector, emphasizing the need for compliance to ensure the authenticity and legality of investment advice provided by influencers.

Additionally, the ASCI guidelines outline that registered influencers must prominently display their registration numbers, names, and qualifications when offering investment-related advice. These measures aim to enhance transparency and safeguard the interests of investors seeking financial guidance from influencers in the BFSI domain.