ASCI Eases Rules for Finfluencers, But SEBI Regulations Still Apply

The Advertising Standards Council of India (ASCI) has announced that financial and health influencers do not need professional qualifications to share general information about related products or services. However, if influencers offer technical advice, they must be registered with the Securities and Exchange Board of India (SEBI) or have relevant financial credentials.

ASCI Reiterates Finfluencers to Register With SEBI Before Offering Technical Advice 

ASCI has made it clear that influencers can speak about general financial topics like saving tips or benefits of insurance without needing licenses. But when it comes to offering technical or specific advice—such as recommending stocks, SIPs, or funds—proper registration with SEBI is mandatory.

This decision will not only protect consumers but also allow more creative freedom for influencers, as long as they don’t act like financial experts without proper qualifications.

SEBI Still in Charge

SEBI has been tightening rules around financial influencers. For example:

• Influencers cannot use live stock prices while educating followers.

• SEBI-registered firms cannot use influencers for promotions, even via third parties.

• Claims about returns on investments are banned unless SEBI approves them.

Legal experts have emphasised that ASCI’s guidelines do not override SEBI’s authority. Violating SEBI norms can lead to serious penalties like suspension of licences.

Industry Reaction: Relief for Finfluencers and Brands

Many influencers and agencies welcomed ASCI’s update. Many brands had withdrawn finfluencer’s contracts after SEBI’s earlier warnings, leaving them without deals for months. But as clarity has increased, brand collaborations are rising again. ASCI’s new guidelines are expected to help even more.

Conclusion

ASCI’s relaxed rules offer influencers and brands more room to work together, but SEBI’s strict guidelines still rule the space. Influencers must be careful to stay within legal limits while creating content.

Read more on: This Retail Player with Rich Dividend History Considering Bonus Issue: Do You Own This?

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.