{"id":51640,"date":"2025-01-31T19:22:19","date_gmt":"2025-01-31T13:52:19","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=51640"},"modified":"2025-04-03T18:16:41","modified_gmt":"2025-04-03T12:46:41","slug":"financial-influencers-face-40-60-decline-in-brand-deals-amid-sebi-crackdown","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/financial-influencers-face-40-60-decline-in-brand-deals-amid-sebi-crackdown\/","title":{"rendered":"Financial Influencers Face 40-60% Decline in Brand Deals Amid SEBI Crackdown"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p><\/p>\n\n\n\n<p>India\u2019s financial scenario is changing, especially with <a href=\"https:\/\/www.equentis.com\/blog\/what-does-sebi-mean-for-indian-investors\/\">SEBI<\/a> (The Securities and Exchange Board of India) stepping in to regulate financial influencers, or &#8220;finfluencers.&#8221; The goal is simple\u2014ensure investors get reliable, unbiased advice and protect them from misleading information.<\/p>\n\n\n\n<p>SEBI has issued a circular to clarify rules for regulated entities and individuals, aiming to stop illegal advisories posing as <a href=\"https:\/\/www.equentis.com\/blog\/what-is-stock-market-and-how-it-works\/\">stock market<\/a> education. As a result, many finfluencers are experiencing declining brand deals and overall influence.<\/p>\n\n\n\n<p>This crackdown has caused brand deal <a href=\"https:\/\/www.equentis.com\/blog\/old-tax-regime-slabs\/\">rates<\/a> to drop by 40-60%. Brands are now shifting their focus to long-term financial products and educational content, preferring to collaborate with influencers who offer reliable, risk-free advice on <a href=\"https:\/\/www.equentis.com\/blog\/what-are-mutual-funds-a-comprehensive-guide\/\">mutual funds<\/a>, SIPs, and <a href=\"https:\/\/www.equentis.com\/blog\/how-to-make-10-crores-before-retirement\/\">retirement planning<\/a>. Source: <a href=\"https:\/\/www.moneycontrol.com\/news\/business\/sebi-to-curb-finfluencers-to-help-investors-get-accurate-unbiased-info-11301221.html?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">moneycontrol.com<\/a><\/p>\n\n\n\n<p>In this article, we&#8217;ll explore the impact of SEBI&#8217;s regulations on finfluencers and provide guidance on selecting a <a href=\"https:\/\/www.equentis.com\/blog\/what-is-financial-advisory-complete-guide\/\">financial advisor<\/a> who aligns with your needs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>SEBI&#8217;s Crackdown on Finfluencers<\/strong><\/h2>\n\n\n\n<p>Social media has led to the rise of finfluencers\u2014people who share financial advice on platforms like YouTube, Instagram, and Twitter. While some provide useful insights, others, without proper qualifications, may spread misleading information. To protect investors, SEBI wants finfluencers to register and follow set guidelines. It also plans to ban unregistered finfluencers from promoting mutual funds and stockbrokers. Source: <a href=\"https:\/\/www.moneycontrol.com\/news\/business\/sebi-to-curb-finfluencers-to-help-investors-get-accurate-unbiased-info-11301221.html?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">moneycontrol.com<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>SEBI\u2019s Key Restrictions<\/strong><\/h3>\n\n\n\n<p>SEBI has now banned two major activities for unregistered influencers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Giving investment advice, directly or indirectly, without SEBI approval.<\/strong><\/li>\n\n\n\n<li><strong>Making claims about returns or performance without SEBI authorization.<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>SEBI\u2019s Rules Impacting Financial Influencers<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>SEBI Bans Unregistered Investment Advisors<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">A circular issued on January 29, 2025, bans unregistered individuals from giving investment advice. <br>This step aims to protect investors from misleading information and highlights the need for advice from registered professionals.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Earlier Restrictions on Unregistered Entities<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">While an earlier circular on October 22, 2024, had already restricted associations between registered and unregistered entities, this latest update aims to eliminate the practice of unregulated financial advice disguised as stock market education.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Three-Month Delay on <a href=\"https:\/\/www.equentis.com\/stocks-screener\">Stock Price<\/a> Data<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">According to experts, with SEBI mandating a three-month delay on <a href=\"https:\/\/www.equentis.com\/blog\/reading-stock-charts-the-basics\/\">stock price<\/a> data, financial influencers who rely on real-time updates may lose relevance.&nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Regulatory Measures Aim to Curb Misinformation<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">These regulatory measures are designed to curb the spread of inaccurate financial advice and ensure investors can access reliable information. <br>Consequently, finfluencers who fail to comply with these guidelines may lose brand partnerships and credibility.<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/www.moneycontrol.com\/news\/business\/personal-finance\/sebi-clamps-down-on-finfluencers-here-s-how-to-pick-the-right-financial-advisor-for-you-12924024.html\" target=\"_blank\" rel=\"noopener\">Moneycontrol<\/a><\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>Decline in Brand Deals and Earnings<\/strong><\/h2>\n\n\n\n<p>Industry experts highlight that brand deals will take a hit since influencers can no longer directly promote mutual funds or specific stocks. This means a drop in both affiliate and promotional income. Many influencers earn a commission of around 2\u20135% when investors use their referral links, and this revenue stream will likely shrink.<\/p>\n\n\n\n<p>Many followers turn to financial influencers for daily market updates. Without real-time content, engagement is expected to decline. People might not follow them as much as before, leading to fewer brand deals. Traders who depend on real-time updates may feel disconnected, affecting influencer-follower relationships.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>Impact on Brand Collaborations<\/strong><\/h2>\n\n\n\n<p>Experts believe that outdated stock prices will impact influencer marketing. Many brands use influencers to attract active traders, and the new regulations disrupt this approach. SEBI\u2019s oversight has led to a cautious approach from brands, reducing the number of deals for financial influencers.<\/p>\n\n\n\n<p>Before these regulations, influencers offering live market updates and stock tips commanded high rates\u2014often \u20b91-3 lakh per post. However, SEBI\u2019s clampdown has led to a 40-60% drop in brand deal rates.&nbsp; Source: <a href=\"https:\/\/www.moneycontrol.com\/news\/trends\/financial-influencers-to-see-drop-in-brand-deals-and-value-as-sebi-curbs-use-of-live-stock-prices-12924388.html\" target=\"_blank\" rel=\"noopener\">Moneycontrol<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>Who Still Commands High Rates?<\/strong><\/h2>\n\n\n\n<p>Finfluencers specializing in cryptocurrency, trading, or high-level financial planning still earn premium rates, ranging between \u20b93 lakh and \u20b912 lakh per collaboration. Experts also highlight how platform-based pricing varies\u2014macro influencers might charge \u20b91.5 lakh for an Instagram post, \u20b92.5 lakh for a YouTube video, and \u20b91 lakh for a Twitter post, depending on engagement levels.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>Struggles for Smaller Finfluencers<\/strong><\/h2>\n\n\n\n<p>Micro and mid-tier financial influencers are facing significant challenges. Many have seen their business models collapse due to the new regulations, forcing influencers and brands to rethink their approach. Brands are also reassessing their strategies to stay compliant with SEBI guidelines.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>The Numbers Behind the Shift<\/strong><\/h2>\n\n\n\n<p>According to Qoruz data, as of December 2024, India had 232,000 finance influencers. Only 5-10% of them focused on stock-market-related content. That means just 11,000 to 23,000 influencers discussed stocks, many of whom had already adapted to SEBI\u2019s earlier restrictions.<\/p>\n\n\n\n<p>As the influencer marketing landscape evolves, content creators and brands must navigate these new regulations carefully, focusing on compliance and long-term financial education rather than short-term market updates. Source: <a href=\"https:\/\/www.moneycontrol.com\/news\/trends\/financial-influencers-to-see-drop-in-brand-deals-and-value-as-sebi-curbs-use-of-live-stock-prices-12924388.html\" target=\"_blank\" rel=\"noopener\">Moneycontrol<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>Adapting to New Guidelines<\/strong><\/h2>\n\n\n\n<p>With SEBI\u2019s evolving regulations, many financial influencers have successfully shifted their focus to broader financial literacy topics, such as smart money management, thrift strategies, and saving techniques. This change has also opened new brand collaboration opportunities beyond the stock market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>Exploring New Revenue Streams<\/strong><\/h2>\n\n\n\n<p>According to experts, many financial influencers have started offering paid courses on topics like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How to <a href=\"https:\/\/www.equentis.com\/blog\/how-to-start-investing-with-a-low-budget\/\">start investing<\/a> in mutual funds<\/li>\n\n\n\n<li>How to evaluate a mutual fund or stock<\/li>\n\n\n\n<li>Step-by-step guides on mutual funds and stocks<\/li>\n<\/ul>\n\n\n\n<p>Subscription-based courses have emerged as a key monetization model. Additionally, influencers collaborate with asset management companies (AMCs) to conduct financial education sessions, creating valuable learning opportunities while diversifying their revenue streams.<\/p>\n\n\n\n<pre class=\"wp-block-verse has-ast-global-color-5-color has-text-color has-background has-link-color wp-elements-fff75dd8a2af25c637d2141725794cfb\" style=\"background-color:#001e5a\"><strong>Know More:  <\/strong><br><strong><a href=\"https:\/\/www.equentis.com\/blog\/sebi-registered-investment-advisor-meaning-eligibility\/\">SEBI registers investment advisory<\/a> |  <a href=\"https:\/\/www.equentis.com\/researchandranking\">Stock investment advisory<\/a><\/strong><\/pre>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>The Challenge of Transition<\/strong><\/h2>\n\n\n\n<p>Not all influencers find this transition easy. Many followers rely on financial influencers for daily stock market updates. Their audience mainly consists of traders or active investors. Shifting to broader financial content might reduce engagement and brand deal rates.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>A Positive Step for Investor Protection<\/strong><\/h2>\n\n\n\n<p>While financial influencers adjust to these changes, SEBI\u2019s regulations are seen as a much-needed safeguard for retail investors. Experts believe this move will prevent individuals from losing money by following unregistered influencers for stock tips.<\/p>\n\n\n\n<p>This move will promote responsible financial education and allow credible creators to thrive. It will also focus on fact-based, long-term financial education rather than speculative stock tips.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>The Importance of Choosing the Right Financial Advisor<\/strong><\/h2>\n\n\n\n<p>With these regulatory changes, seeking financial advice from qualified professionals is more crucial than ever. A competent financial advisor can help you navigate complex financial decisions, plan for your future, and ensure that your <a href=\"https:\/\/www.equentis.com\/blog\/mukul-agrawal-portfolio-shareholdings-investments-all-you-need-to-know\/\">investments<\/a> align with your goals and <a href=\"https:\/\/www.equentis.com\/blog\/are-risk-tolerance-and-risk-appetite-the-same\/\">risk tolerance<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Steps to Select the Right Financial Advisor<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Identify Your Financial Goals<\/strong><\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>Before seeking an advisor, clearly define your financial objectives. Are you <a href=\"https:\/\/www.equentis.com\/blog\/6-smart-ways-to-save-income-tax-after-marriage-in-india\/\">planning for retirement<\/a>, saving for a child&#8217;s education, or looking to grow your wealth? Understanding your goals will help you find an advisor whose expertise aligns with your needs.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Verify Credentials and Registration<\/strong><\/h3>\n\n\n\n<p>Ensure the advisor is registered with SEBI as a Registered <a href=\"https:\/\/www.equentis.com\/blog\/sebi-registered-investment-advisor-meaning-eligibility\/\">Investment Advisor<\/a> (RIA) or holds relevant certifications. Registered advisors must adhere to regulatory standards, providing an added layer of security for investors. <a href=\"https:\/\/www.moneycontrol.com\/news\/business\/personal-finance\/sebi-clamps-down-on-finfluencers-here-s-how-to-pick-the-right-financial-advisor-for-you-12924024.html?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">moneycontrol.com<\/a><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Understand the Advisor&#8217;s Fee Structure<\/strong><\/h3>\n\n\n\n<p>Financial advisors may charge fees in various ways, including:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Fee-Only<\/strong>:<\/h3>\n\n\n\n<p>A flat fee or hourly rate for their services.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Commission-Based<\/strong>:<\/h3>\n\n\n\n<p>Earnings are based on the financial products they sell.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Fee-Based<\/strong>:<\/h3>\n\n\n\n<p>A combination of fees and commissions. Understanding the fee structure is essential to identify potential conflicts of interest and ensure transparency. <a href=\"https:\/\/www.moneycontrol.com\/news\/business\/personal-finance\/how-to-choose-between-fee-only-and-commission-based-financial-advisors-5869721.html?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">moneycontrol.com<\/a><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Assess Experience and Expertise<\/strong><\/h3>\n\n\n\n<p>Look for advisors with a proven financial planning and investment management track record. Experience in handling diverse financial situations can be invaluable. Don&#8217;t hesitate to ask for references or case studies demonstrating their expertise.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Evaluate Communication and Compatibility<\/strong><\/h3>\n\n\n\n<p>Effective communication is key to a successful advisor-client relationship. Your advisor should be able to explain complex financial concepts in simple terms and be responsive to your questions. Additionally, ensure that their communication style aligns with your preferences.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Check for Fiduciary Responsibility<\/strong><\/h3>\n\n\n\n<p>Prefer advisors who operate under a fiduciary duty, meaning they are legally obligated to act in your best interest. This ensures that the advice you receive is unbiased and focused on your financial well-being.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Seek Transparency and Disclosure<\/strong><\/h3>\n\n\n\n<p>A trustworthy advisor will be transparent about their investment strategies, potential risks, and any affiliations that might influence their recommendations. Full disclosure helps build trust and allows you to make informed decisions.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Consider the Advisor&#8217;s Approach to Financial Planning<\/strong><\/h3>\n\n\n\n<p>Understand how the advisor develops financial plans. Do they offer comprehensive planning that covers various aspects of your financial life, or do they focus solely on investments? Ensure that their approach aligns with your expectations and needs.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Review Client Testimonials and Reviews<\/strong><\/h3>\n\n\n\n<p>Seek feedback from current or former clients to gauge the advisor&#8217;s reliability and effectiveness. Online reviews and testimonials can provide insights into the advisor&#8217;s reputation and client satisfaction.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><\/li>\n<\/ol>\n\n\n\n<p><strong>Conclusion<\/strong><\/p>\n\n\n\n<p>SEBI&#8217;s recent actions to regulate finfluencers highlight the importance of obtaining financial advice from qualified and trustworthy sources. By following the steps outlined above, you can select a financial advisor who meets regulatory standards and aligns with your personal financial goals.&nbsp;<\/p>\n\n\n\n<p class=\"has-ast-global-color-5-color has-vivid-red-background-color has-text-color has-background has-link-color wp-elements-a377517bdd8f600e0c2e7efd2ef366fd\">Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis \u2013 Research &amp; Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL &amp; certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.<\/p>\n\n\n<div class=\"crp-list-container\"><h3 class=\"crp-list-title\">Related Posts<\/h3><ul class=\"crp-list\"><li class=\"crp-list-item crp-list-item-image-left crp-list-item-has-image\"><div class=\"crp-list-item-image\"><a href=\"https:\/\/www.equentis.com\/blog\/10-small-cap-stocks-for-2025\/\"><img decoding=\"async\" style=\"max-width: 50px; height: auto;\" width=\"50\" height=\"50\" src=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2025\/02\/January-2025_SEO_07_10-small-cap-stocks-for-2025_01-01-70x70.jpg\" class=\"attachment-50x50 size-50x50\" alt=\"\" srcset=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2025\/02\/January-2025_SEO_07_10-small-cap-stocks-for-2025_01-01-70x70.jpg 70w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2025\/02\/January-2025_SEO_07_10-small-cap-stocks-for-2025_01-01-150x150.jpg 150w\" sizes=\"(max-width: 50px) 100vw, 50px\" title=\"\"><\/a><\/div><div class=\"crp-list-item-title\"><a href=\"https:\/\/www.equentis.com\/blog\/10-small-cap-stocks-for-2025\/\">10 NSE Small-cap Stocks To Watch for in 2025<\/a><\/div><\/li><li class=\"crp-list-item crp-list-item-image-left crp-list-item-has-image\"><div class=\"crp-list-item-image\"><a href=\"https:\/\/www.equentis.com\/blog\/price-to-earnings-ratio-types-formula-and-limitations\/\"><img decoding=\"async\" style=\"max-width: 50px; 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height: auto;\" width=\"50\" height=\"50\" src=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2025\/01\/What-is-ROCE-70x70.jpg\" class=\"attachment-50x50 size-50x50\" alt=\"What is ROCE\" srcset=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2025\/01\/What-is-ROCE-70x70.jpg 70w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2025\/01\/What-is-ROCE-150x150.jpg 150w\" sizes=\"(max-width: 50px) 100vw, 50px\" title=\"\"><\/a><\/div><div class=\"crp-list-item-title\"><a href=\"https:\/\/www.equentis.com\/blog\/what-is-roce\/\">What is ROCE? A Comprehensive Guide<\/a><\/div><\/li><li class=\"crp-list-item crp-list-item-image-left crp-list-item-has-image\"><div class=\"crp-list-item-image\"><a href=\"https:\/\/www.equentis.com\/blog\/why-frequent-switching-of-sips-should-be-avoided\/\"><img loading=\"lazy\" decoding=\"async\" style=\"max-width: 50px; height: auto;\" width=\"50\" height=\"50\" src=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2025\/02\/Reversion-to-mean-70x70.jpg\" class=\"attachment-50x50 size-50x50\" alt=\"\" srcset=\"https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2025\/02\/Reversion-to-mean-70x70.jpg 70w, https:\/\/www.equentis.com\/blog\/wp-content\/uploads\/2025\/02\/Reversion-to-mean-150x150.jpg 150w\" sizes=\"(max-width: 50px) 100vw, 50px\" title=\"\"><\/a><\/div><div class=\"crp-list-item-title\"><a href=\"https:\/\/www.equentis.com\/blog\/why-frequent-switching-of-sips-should-be-avoided\/\">Why Frequent Switching of SIPs Should Be Avoided?<\/a><\/div><\/li><\/ul><\/div>\n\n\n<h2 class=\"wp-block-heading\">FAQs<\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\"><strong>What prompted SEBI&#8217;s action?<\/strong> <\/h3><p class=\"saswp-faq-answer-text\">SEBI&#8217;s crackdown on finfluencers stems from concerns about misleading financial advice and market manipulation. Paid promotions of stocks without proper disclosures or qualifications were rampant, leading to investor losses. This action aims to protect investors and maintain market integrity.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>How are brand deals affected?<\/strong> <\/h3><p class=\"saswp-faq-answer-text\">Finfluencers&#8217; brand deals, particularly those involving stock promotions, are expected to decline significantly. Companies will be wary of associating with individuals facing SEBI scrutiny. This reduces finfluencers&#8217; income streams and changes influencer marketing dynamics in the financial sector.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>What are the live stock price restrictions?<\/strong> <\/h3><p class=\"saswp-faq-answer-text\">SEBI restricts finfluencers from providing live stock price updates or recommendations during their promotional content. This measure aims to curb real-time market manipulation and prevent investors from making impulsive decisions based on potentially biased information.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>Who is considered a &#8220;fininfluencer&#8221;?<\/strong> <\/h3><p class=\"saswp-faq-answer-text\">SEBI&#8217;s definition of a finfluencer broadly covers anyone providing financial advice or commentary on social media platforms, regardless of their follower count. This includes registered advisors and unregistered individuals offering opinions on stocks, investments, or market trends.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>What are the potential consequences for influencers?<\/strong> <\/h3><p class=\"saswp-faq-answer-text\">Finfluencers violating SEBI regulations could face penalties, including fines, bans from the securities market, and even legal action. Brands collaborating with such individuals may also face reputational damage. Increased regulatory oversight is expected in the finfluencer marketing space.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>India\u2019s financial scenario is changing, especially with SEBI (The Securities and Exchange Board of India) stepping in to regulate financial influencers, or &#8220;finfluencers.&#8221; The goal is simple\u2014make sure investors get reliable, unbiased advice and protect them from misleading information.<\/p>\n","protected":false},"author":5,"featured_media":51641,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[948,10],"tags":[],"class_list":["post-51640","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market-news","category-business"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/51640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=51640"}],"version-history":[{"count":9,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/51640\/revisions"}],"predecessor-version":[{"id":51658,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/51640\/revisions\/51658"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/51641"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=51640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=51640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=51640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}