New Delhi: SEBI has banned registered entities from associating with unregistered finfluencers who promote stocks and offer incomplete investment advice. This decision follows a consultation paper released last August and public feedback.
SEBI chairperson Madhabi Puri Buch explained that the new regulations differentiate between regulated advisors and unregistered individuals, as SEBI can only control regulated entities. Investors are assured of dealing with registered entities and secure payment channels.
SEBI's statement specifies that regulated persons and their agents must not engage in transactions, referrals, or associations with unregistered individuals providing investment advice or performance claims, unless permitted by SEBI.
Additionally, SEBI requires that registered finfluencers display their registration number, contact details, investor grievance redressal helpline, and include appropriate disclosures and disclaimers in their posts.
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