SEBI Plans Action Against Unregistered Finfluencers, Talks with Google and Telegram

According to a Moneycontrol report, the Securities and Exchange Board of India (SEBI) is stepping up efforts to control the growing menace of unregistered financial influencers or 'finfluencers' misleading investors through online platforms. 

In a landmark move, SEBI is in active discussions with tech giants Google and Telegram to stop the misuse of these platforms for unauthorised financial advice and dubious investment schemes.

SEBI’s Plan Strategic Alliance With Google and Telegram 

SEBI is rolling out a multi-pronged strategy to clamp down on unregistered finfluencers promoting misleading advice online. Prominent platforms like Google and Telegram are being engaged to cooperate in monitoring, flagging and, if necessary, restricting accounts that pose financial risks to the public. 

Authorities have found that platforms such as YouTube, Telegram and WhatsApp are being misused to circulate fake stock tips, hype unknown companies or promote schemes promising unrealistic returns. These platforms are now being urged to put in preventive tools as a shared responsibility toward investor protection.

Measures to Combat Fraudulent Financial Content

Regulators are pushing for stringent verification systems to ensure only registered financial advisors can publicise investment content or advertise services. 

SEBI has clearly stated that regulated entities must not associate monetarily or digitally with unregistered finfluencers. Even indirect collaborations or promotions will be treated as violations. Exceptions apply to associations made only through ‘specified digital platforms’ which employ structured preventive and remedial mechanisms. 

These platforms must ensure that no tips or investment advice is shared unless the originator is SEBI registered and refrains from making claims of guaranteed returns.

Read More: SEBI’s Re-Categorisation 2.0: Mutual Fund Schemes to Get New Names for Alignment! 

Platforms Expected to Align for Investor Safety

Initial responses from social media companies have been mostly positive, with platforms showing a willingness to align their policies with SEBI’s objectives. Regulatory sources hinted that those unwilling to comply may lose ties with SEBI-regulated entities. 

This step aims to tighten the ecosystem and isolate platforms facilitating misleading investment promotions. Meta has already responded by mandating SEBI verification for all investment-related ads targeting Indian users, starting from July 31, 2025.

Focus on Investor Awareness and Education

Besides policy enforcement, SEBI is focusing heavily on investor education. The regulator continues to caution investors to conduct due diligence and avoid acting upon online tips that promise fixed or deceptively high returns. The emphasis rests on spreading awareness to safeguard retail investors from fraudsters using slick marketing and digital tricks to cause financial damage.

Conclusion

SEBI’s move to coordinate with major digital platforms marks a pivotal shift in investor protection. By actively regulating the digital financial advisory space and discouraging unauthorised actors, this step ensures the investment environment remains transparent and trustworthy.

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