Sebi new rule: The Securities and Exchange Board of India (SEBI) has imposed strict ban on the use of live stock market data under a new rule, placing screws on Finfluencers. According to the circular issued on 29 January 2025, now any stock market educator will be able to use only three months old stock price data. Its purpose is to stop those who were affecting investors by giving suggestions related to investment in the name of education.
What are the new SEBI rules
SEBI has clarified that a person teaching the stock market will not be allowed to show or discuss less than three months old. This ban will apply to real-time price data, stock name, code name or any material that indicates the recommendation of investment.
SEBI Circular states that “if a person is engaged only in education, it means that he is not engaged in any of the two banned activities.” This means that no unauthorized person can give stock market advisory, even if he gives it the name of “education”.
What will be the effect on Finfluencers?
This decision of SEBI can prove to be a setback for those social media -based finagefluesrs who used to make followers through live market updates and trading tips. Earlier, in October 2024, SEBI issued another circular, in which registered financial institutions were stopped from joining with unauthorized financial influencers. Now this new rule has ensured that Finnfluteners will not be able to give unauthorized trading advice in the name of “education”.
Key things of sebi circular
Not allowed without certified investment advice – Only professionals registered by SEBI can give advice related to the stock market.
False promises restricted – No person can claim guaranteed profits or fixed returns, unless SEBI allows it.
Companies will also be responsible – If a financial company works with people who are making false claims, then SEBI will also hold it accountable.
Education permission, but no secret advice – It is okay to teach stock market, but it is strictly forbidden to advise or make predictions on this excuse.
Advertisement should be transparent – Institutions registered with SEBI cannot do advertising or promotional deal with any financer.
Secret deals banned – The secret transactions of money, referral or customer data have also been banned.
Provision of strict action – Fines, suspension or SEBI registration can be canceled for violating new rules.
Rules are already applicable – These restrictions are effective since August 29, 2024, and companies were to comply with January 2025.
Why did SEBI have to take these steps?
Finnafluns on social media platforms like YouTube, Instagram, and Telegram have become increasingly popular. However, many of these sell stock tips in the name of “education” and mislead investors. SEBI found that many finnfluencers were selling stock tips to investors through paid membership, courses and private groups, causing damage to small investors. The purpose of this strict action is to stop such irregular investment advisors and maintain market transparency.
Impact on Finnfluten Industry
After these new rules, many finnfluns will have to change their strategy. By not using live stock data, the popularity of their content can decrease. If they want to follow SEBI guidelines, they will either have to receive SEBI registration or completely change the focus of their content. This step of SEBI makes it clear that it is necessary to maintain a clear difference between the education and investment advice of the stock market. Any person, Finnaphyluenser or Financial Institute will violate these rules, he will have to face strict action of SEBI.
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